Payment cuts and givebacks in the first three years of health reform will harm hospitals' margins and limit their ability to reduce bad debt, according to a release by Standard & Poor's Equity Research Services.
"We anticipate that operating trends at most hospital companies will remain fairly negative in 2010, but could improve modestly if the recession ends during the year," said Jeffrey Englander, a healthcare facilities analyst at the company.
Hospitals will have a chance to recover after 2014, when the law adds 32 million more insured Americans, the company said.
Meanwhile, "although the Medicare pricing outlook currently appears favorable, federal and state budget problems and federal cost-cutting could pressure both Medicare and Medicaid reimbursement in the future," Mr. Englander said.
Read Standard & Poor's Equity Research Services' release on hospital finances.
"We anticipate that operating trends at most hospital companies will remain fairly negative in 2010, but could improve modestly if the recession ends during the year," said Jeffrey Englander, a healthcare facilities analyst at the company.
Hospitals will have a chance to recover after 2014, when the law adds 32 million more insured Americans, the company said.
Meanwhile, "although the Medicare pricing outlook currently appears favorable, federal and state budget problems and federal cost-cutting could pressure both Medicare and Medicaid reimbursement in the future," Mr. Englander said.
Read Standard & Poor's Equity Research Services' release on hospital finances.