The industry will see benefits and drawbacks from the law, Fitch said. More people will be able to seek out healthcare services and pay for their treatment as more people gain health insurance under the law in 2014, which will benefit the sector. However, the industry will also face Medicare cuts, and new taxes, fees and discounts, Fitch said. “For most industry participants, it is unclear if the incremental revenue generated from increased utilization and lower levels of uncompensated care will offset the potential compression in margins.”
And the political fight is not over, Fitch said. “Focus now shifts to the outcome of the November 2012 elections, and we expect the ACA will continue to face significant legislative challenges,” said analysts.
An increase of insured patients under reform would benefit providers with high levels of uncompensated care the most, Fitch said.
Meanwhile, the squeeze on rising U.S. health spending has prompted providers to invest in physicians and electronic medical records in anticipation of new payment models, Fitch said.