Reuters logo
UPDATE 1-New Obama term neutral for non-profit hospitals-Moody's
November 7, 2012 / 8:31 PM / 5 years ago

UPDATE 1-New Obama term neutral for non-profit hospitals-Moody's

By Atossa Araxia Abrahamian

NEW YORK, Nov 7 (Reuters) - Moody’s Investors service announced on Wednesday that the re-election of President Barack Obama was credit neutral for not-for-profit hospitals, but that uncertainty remains about the implementation of the president’s healthcare reforms.

The rating agency said that the so-called “individual mandate” -- the part of President Obama’s Patient Protection and Affordable Care Act that requires all individuals to obtain health insurance starting in 2014 -- now has greater chance of being implemented. This, said Moody‘s, was a “favorable outcome” for the industry because there will be fewer uninsured patients seeking care in emergency rooms, reducing the number of unpaid medical bills.

However, the reform remained a net long-term negative overall for not-for-profit hospitals because of significant reductions in Medicare and Medicaid funding, increased insurer regulation, and lower reimbursement rates.

Moody’s said the possibility of a full implementation of the healthcare law has been built into the negative outlook for the non-profit hospital sector. Still, it said that uncertainty about the future of federal healthcare policy persists and continues to heighten credit risk in an “already pressured operating environment.”

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below