Although credit ratings on most non-profit hospitals and healthcare providers should remain stable this year, the financial environment will be "less favorable" compared with the past three years, according to a Standard & Poor's Ratings Services report.
Liz Sweeney, an S&P credit analyst, said in a news release that the stability currently surrounding non-profit hospitals is "due to the financial cushion many providers have built in the last few years, successful and ongoing cost containment efforts and the benefits of consolidation."
However, Medicare reimbursement reductions in Congress' fiscal cliff deal from last week, the continued threat of further Medicare cuts through sequestration, tepid utilization trends and penalties associated with value-based purchasing will put that stability to the test, according to the report.
S&P analysts said in the release that 2014 will be the major test for hospitals, as the health insurance mandate, Medicaid expansion and health insurance exchanges "could fundamentally alter the healthcare delivery and financing landscape."
Liz Sweeney, an S&P credit analyst, said in a news release that the stability currently surrounding non-profit hospitals is "due to the financial cushion many providers have built in the last few years, successful and ongoing cost containment efforts and the benefits of consolidation."
However, Medicare reimbursement reductions in Congress' fiscal cliff deal from last week, the continued threat of further Medicare cuts through sequestration, tepid utilization trends and penalties associated with value-based purchasing will put that stability to the test, according to the report.
S&P analysts said in the release that 2014 will be the major test for hospitals, as the health insurance mandate, Medicaid expansion and health insurance exchanges "could fundamentally alter the healthcare delivery and financing landscape."
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