The uninsured rate went down in 2011, and more individuals with health insurance makes for a "modest credit positive" for the non-profit hospital sector, according to a recent report from Moody's Investors Service.
Earlier this month, the U.S. Census Bureau reported that 84.3 percent of the population had health insurance in 2011 — an increase from 83.7 percent in 2010. As more people have health insurance at their disposal, there will be a higher demand for hospital services over the long term.
However, Moody's analysts said the figures are only a small dose of good news for hospitals.
"In the short term, this news is only a modest credit positive for hospitals because the largest increase in insured individuals was among the youngest and healthiest individuals, and demand for healthcare services is still dampened by the weak economy," according to the report. "While some insurance is better than none, the source of insurance affects how much hospitals will benefit since government insurance tends to provide less reimbursements to hospitals than private insurance does."
In addition, hospitals that will benefit the most from higher insured rates will be safety-net facilities that normally treat low-income, uninsured patients.
Earlier this month, the U.S. Census Bureau reported that 84.3 percent of the population had health insurance in 2011 — an increase from 83.7 percent in 2010. As more people have health insurance at their disposal, there will be a higher demand for hospital services over the long term.
However, Moody's analysts said the figures are only a small dose of good news for hospitals.
"In the short term, this news is only a modest credit positive for hospitals because the largest increase in insured individuals was among the youngest and healthiest individuals, and demand for healthcare services is still dampened by the weak economy," according to the report. "While some insurance is better than none, the source of insurance affects how much hospitals will benefit since government insurance tends to provide less reimbursements to hospitals than private insurance does."
In addition, hospitals that will benefit the most from higher insured rates will be safety-net facilities that normally treat low-income, uninsured patients.
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