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MA healthcare law may hurt hospital credit ratings

Reuters, August 7, 2012

Moody's Investors Service said Massachusetts legislation aimed at curbing healthcare costs, to be signed into law on Monday, may put a strain on hospitals' credit ratings because it will hamper their revenue growth. Lawmakers passed the legislation last week, making Massachusetts the first state in the nation to curb how much providers and insurers can spend on medical care, and putting the state on course to save up to $200 billion over 15 years. The law will limit revenue growth and reduce operating flexibility for hospitals in the state, Moody's said.