Moody's lowers outlook on for-profit hospital sector

Moody's Investors Service has revised the outlook on the U.S. for-profit hospital industry to stable from positive.

Although the for-profit hospital sector's performance will be boosted by acquisitions in 2015 and Moody's expects hospital earnings to continue to grow, the rating agency still lowered the sector's outlook.

"We expect same-facility earnings growth to remain strong through the next quarter, but then to return to normal as the benefit from the reduction in the uninsured population continues to decline," said Dean Diaz, senior vice president of Moody's. "Hospitals' results in the second half of this year will compare less favorable with their 2014 numbers, which led us to change our outlook for the industry."

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