Moody's gave the American not-for-profit health care sector a negative outlook because of uncertainly surrounding funding for federal health programs and gridlock surrounding the health law. But S&P notes that revenue for Medicare and commercial insurers grew over the year that ended in June.
Reuters: U.S. Not-For-Profit Hospital's Outlook Negative: Moody's
The outlook for the U.S. not-for-profit healthcare sector remains negative as new uncertainties over Medicare and Medicaid funding and the potential for political gridlock on healthcare reform could worsen the low growth in revenue, Moody's Investors Service said in a report. "The economic recovery will remain tepid, the transition to new payment methodologies will require significant investment, revenue growth will remain low by historical standards, and reimbursement will remain under pressure from all sources," Moody's analyst Daniel Steingart wrote in the report, which was published on Wednesday (Gralla, 8/16).
Modern Healthcare: Providers See Rise In Insurer, Medicare Revenue: S&P
Medicare and commercial insurer revenue for hospitals and healthcare professionals grew 5.78% during the year that ended in June, according to Standard & Poor's Healthcare Economic Indices. Medicare revenue for hospitals and healthcare professionals rose 2.27% during the 12 months that ended in June, according to Standard & Poor's. Hospital revenue from Medicare increased 1.96% during the period. Healthcare professionals, such as physicians, saw Medicare revenue climb 2.41% for the 12 months (Evans, 8/16).