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Moody's, S&P: For-Profit Hospitals' Outlook Stable

John Commins, for HealthLeaders Media, March 7, 2013

Peknay says, however, that S&P also takes into consideration adjustments and efficiencies that for-profit hospitals are making to reduce costs, find new revenue sources, and identify new business lines in the face of lowered reimbursements.

"The majority of our ratings allow for some variability in results, and so we do not anticipate rating changes as a result of the Medicare cut," Peknay said.

Moody's Diaz says weak patient volumes will continue throughout 2013 as people who lost their health insurance in the down economy or those who must pay a larger portion of their medical expenses put off elective care.

Reimbursement rates also are expected to remain under pressure with the decline in growth of revenue from patients with commercial plans as a percentage of total revenue, owing to the sector-wide move to more outpatient services.

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