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Lack of insurance mandate would hurt hospitals

Reuters, April 25, 2012

Non-profit hospitals will struggle with higher costs if the U.S. Supreme Court overturns a key part of the healthcare reform law that requires individuals to buy insurance, Moody's Investors Service said on Tuesday. It "would result in a significant reduction in uncompensated care delivered by hospitals" and reduce "utilization of expensive emergency room services," the rating agency said in a special report. "This scenario could become untenable for many insurers and hospitals, as costs would rise but revenues would not," it added.