President Barack Obama's re-election was a major event for the entire country, but it's a relatively neutral event for the credit of non-profit hospitals, according to a report from Moody's Investors Service.
Moody's analysts said President Obama's healthcare policies, primarily the Patient Protection and Affordable Care Act, had already been factored into the non-profit hospital industry's outlook. Since the PPACA will move forward, the same credit risks remain for those organizations, according to the report.
The biggest long-term credit negatives for hospitals are embedded within the PPACA, such as $150 billion of reduced Medicare reimbursements to hospitals over 10 years and $14 billion of Medicaid disproportionate share hospital payment cuts. However, Moody's analysts said the individual mandate will at least be a "discreet credit positive" for the non-profit hospital sector as millions of individuals will gain access to health insurance starting in 2014.
Moody's analysts said President Obama's healthcare policies, primarily the Patient Protection and Affordable Care Act, had already been factored into the non-profit hospital industry's outlook. Since the PPACA will move forward, the same credit risks remain for those organizations, according to the report.
The biggest long-term credit negatives for hospitals are embedded within the PPACA, such as $150 billion of reduced Medicare reimbursements to hospitals over 10 years and $14 billion of Medicaid disproportionate share hospital payment cuts. However, Moody's analysts said the individual mandate will at least be a "discreet credit positive" for the non-profit hospital sector as millions of individuals will gain access to health insurance starting in 2014.
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