This just in. A Moody’s Investors report states that “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 onhealthcare reform could worsen the low growth in revenue”. There are three reasons for this:
- One is the pressure to acquire physician practices and other providers, in order to remain competitive, which may require raising capital.
- The second risk is the increasing need to acquire or work with insurers to transition from getting paid each time a patient is treated to new reimbursement methods.
- The third risk is the U.S. Supreme Court’s decision on the healthcare reform law that allows states to opt out of enrolling more people under Medicaid.
So, to summarize, these hospitals need more Medicaid patients but won’t get them, they also don’t know how to get paid in a “moving target” systems that pays for unproven quality, and lastly, they need to buy doctors but are having difficulty (because no one wants to work there). Can you smell future bailout? And capitalism is bad?
And, by the way, CEOs and other administrators keep growing and getting paid exorbitant fees at these not-for-profits. I am not sure why that isn’t mentioned.