Non-profit hospitals may not fare well financially in 2019, suggests Moody’s Investor Services, the financial services and rating company.
The challenge, according to Moody’s:
Revenue growth will be constrained as the sector continues to face numerous challenges, including low patient volume growth and higher bad debt as co-pays and deductibles rise.
Expense growth is anticipated to slow through cost-cutting measures and lower increases in drug prices. However, expenses will still outpace revenues due to the ongoing need for temporary nurses, continued recruitment of employed physicians, wage increases associated with lower unemployment, innovative specialty drugs, and increased use of medical devices.
In sum, Moody’s concludes that
The not-for-profit healthcare outlook remains negative amid some glimmers of stability.
Learn more from this Moody’s news release.