Moody's Says FY 2011 Medicare Cuts Will Hurt Non-Profit Hospitals

Moody's Investor Service has maintained its negative outlook for the non-profit hospital industry, citing the recent 0.4 percent net decrease for inpatient reimbursements by CMS, according to a report by the Healthcare Financial Management Association.

The reimbursement cuts, which will go into effect Oct. 1, are estimated to total a $440 million cut to the hospitals.

Moody's said the net reduction is "extremely rare" given CMS rates typically increase from year to year. The ratings agency also stated that while non-profit hospitals have successfully reduced costs in recent years through supply chain and labor productivity improvements, additional reductions in these areas will be very challenging, according to the report.

Read the HFMA report on non-profit hospitals.

Read more about non-profit hospitals:

- Report: Weak Margins Threaten Survival of Smaller Not-for-Profit Hospitals

-
Study: Non-profit Healthcare Organizations Averaged Investment Returns of 18.8% in 2009

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars