For the second time this month, financial experts are predicting a tough year ahead for the non-profit hospital industry. First, Standard & Poor’s rating services analyst said profit ratios will be down in 2013 (link here) Now, Moody’s Investors Service is saying expenses outpaced revenue last year as patient revenue slipped by half a percent (found here). What’s more, both reports say that efficiencies in hospital business were actualized last year and won’t produce any more savings in the future. In other words, hospitals got lean and can’t get leaner.
Add to that the paralyzing fear many hospital CEOs are feeling over the effects of the Affordable Care Act, reduced payments from many insurance companies (such as Blue Cross/Blue Shield), and reduced government dollars for patients who are readmitted.
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