Hospital Groups Will Get Bigger; Unlikely Partnerships Could Emerge, Says Moody's

A new report by Moody's outlines how not-for-profit hospitals are being driven by reimbursement pressures and healthcare reform to join forces with health insurers and for-profit companies, among others.

The New York Times: Hospital Groups Will Get Bigger, Moody's Predicts
Responding to changes in health care, big hospital groups are expected to get even bigger. And some hospitals will join forces with once-unlikely partners, health insurers and for-profit companies, a new report says (Abelson, 3/8).

Bloomberg: Hospital Mergers May Enhance Debt Ratings By Reducing Risk, Moody's Says
A wave of hospital mergers, driven partly by the slow economic recovery, reduces financial risks for many institutions and may boost credit ratings in the $3.7 trillion municipal bond market, Moody’s Investors Service said. Reimbursement pressures and rising costs coupled with the prospect of “healthcare reform and an unsustainable payment system” have driven not-for-profit hospitals to look for partnerships, Moody’s said in a report released today. They are choosing to consolidate with other health-care systems to boost their market presence and strengthen balance sheets, analysts led by Lisa Goldstein said in the report (Kaske, 3/8).

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