Friday, December 13, 2013

Modern Healthcare: Fitch lowers not-for-profit hospital outlook to negative

Via Modern Healthcare,

About 365,000 people have bought insurance through an insurance exchange in the first two months that the marketplaces were operational. That number—far below projections—may increase, but Fitch is still "somewhat suspect" that the coverage expansion will mean greater profitability, LeBuhn said.

He added that the majority of plans expected to be sold will be "silver" or "bronze" plans—which means they'll have significant cost sharing, which could lead to increased bad debt for providers.

Moody's Investors Service last month also
affirmed a negative outlook on the not-for-profit healthcare sector, for the sixth straight year.

Rating agencies tossing sand in the eyes of the Healthcare System Engineers behind the Affordable Care Act.  Engineers who thought more coverage would bring more profitability.  Instead the risk falls on the patient and the bad debt will fall on the Hospitals and Providers.

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