Noteworthy News

Moody’s Cites DSH Loss, Other Causes for Dim 2014 Outlook for Non-Profit Hospitals

Non-profit hospitals will struggle in 2014 in the face of shrinking patient volume and slumping revenue growth according to Moody’s, the bond-rating agency.

Moody’s expects non-profit hospital margins to shrink, and one of the causes of that shrinking for some hospitals will be the loss of Medicare disproportionate share hospital payments (Medicare DSH), as mandated by the Affordable Care Act.   The shifting of care from inpatient to outpatient settings also will contribute to shrinking margins for non-profit hospitals.

financeBecause urban safety-net hospitals are all non-profit and receive Medicare DSH payments, this problem is more likely to affect these providers.

For more on the projected financial outlook for non-profit hospitals in 2014, see this Moody’s news release.

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