Moody’s Investors Service yesterday revised its outlook for the nonprofit health care sector to negative from stable, projecting a continued decline in cash flow through 2018. “Revenue growth is under pressure because of very low reimbursement rate increases, an ongoing rise in government payers and a continued shift to high deductible plans,” the report states. “We expect rapid expense growth to outpace revenue growth with high labor costs, nursing shortages and rising bad debt.” According to the report, growth of government payers “will dampen revenue growth for the foreseeable future due to a rapidly aging U.S. population and low reimbursement rates.” Recent tax proposals from the House and Senate also “would be credit negative for not-for-profit health care,” according to the report.

Related News Articles

Headline
The Medicare Payment Advisory Commission Friday released its March report to Congress.
Headline
he Medicaid and CHIP Payment and Access Commission today released its March 2019 report to Congress, which recommends Congress phase in the Affordable Care Act…
Headline
The Centers for Medicare & Medicaid Services today
Perspective
As our country works to expand health coverage and improve access to care, “Medicare for All” is getting a lot of attention. There are many different flavors…
Headline
Legislative proposals for a Medicare public option could negatively affect patient access to care and significantly reduce payments to hospitals, AHA Executive…
Headline
The Centers for Medicare…