Moody's Gives For-profit Hospitals 'Stable' Outlook
John Commins, for HealthLeaders Media, March 9, 2011
Moody's rated the median profit margin of for-profit hospitals at about 15%.
The report said that:
- Investments that hospitals are making to foster future growth could also compress margins in the near term. These include upgrading information technology and aligning with physicians in a bid to boost patient referrals.
- Growth in adjusted admissions will likely remain weak as the uninsured or people whose premiums and co-pays have risen continue to defer non-urgent care. Birth rates, and related hospital admissions, have also declined amid high unemployment and economic sluggishness. This trend will likely continue constraining volume growth.
- Pressure on pricing should continue as commercial insurers resist payment increases and Medicare reimbursements fall.
- Longer-term factors should support demand for hospital services, including the aging baby boomers and consumers' increased access to healthcare through the 2010 industry reform package.
John Commins is a senior editor with HealthLeaders Media.
- $6.4B Henry Ford, Beaumont Merger Failed on Cultural Hurdles
- Fortunately, Angelina Jolie Isn't On Medicare
- Don't Let Nurses Sink Your Bottom Line
- House Lawmakers Grill CMS Over Health Exchange Navigators
- Hospital Pricing Transparency a Marketing Game Changer
- How Chargemaster Data May Affect Hospital Revenue
- Hospitals Profit On Bloodstream Infections
- Uncompensated Care Faces a Double Hit in Some States
- Primary Care Docs Average More Hospital Revenue Than Specialists
- ED Physicians Key to Half of Hospital Admissions