Moodys Investors Service said that investor-owned hospital companies face the risk of large catch-up charges to their income statements if uninsured patient volume increases or collection rates from patients decrease. Predicting whether or when those charges may occur, however, is difficult based on publicly available information, Moodys said. So far, the credit-rating agency said, metrics such as bad-debt expense and others based on accounts receivable and cash flow do not show signs of a spike in uncompensated-care costs. The individual companies have much better data available that they do not publish but use to review their collection histories, Moodys said.
Moodys sees potential hit via uncompensated care
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