Debt-rating downgrades are likely to increase in the short-term as a result of slowing top-line revenue growth among not-for-profit hospitals, a new report from Moody's Investors Service says.
Not-for-profit hospitals face possible downgrades: Moody's
The falling growth is expected to come from a number of areas and supports a negative outlook on the sector by Moody's, according to the report.
Among the pressures are inevitable Medicare rate reductions and likely rate reductions from both Medicaid and commercial payers. Flat inpatient admissions are expected, while uncompensated care is expected to rise amid a “stubborn unemployment rate, and the implementation of new disease diagnosis classifications are likely to disrupt revenues in 2013.
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