Medicare Cuts Could Take Greater Toll On Not-For-Profit Hospitals
Upcoming Medicare cuts to hospitals will have a bigger negative impact on nonprofit facilities than their for-profit counterparts, The Dallas Morning News reports. "In a note to investors, Moody's said the 0.4 percent Medicare reduction in inpatient hospital rates for fiscal year 2011 will amount to an estimated $440 million in lower payments. The cut, announced on July 30, is a key driver for Moody's maintaining a negative outlook for the industry. Not-for-profit hospitals are likely to be affected more because Medicare is their single biggest payer, accounting for about 42 percent of their revenue" (Roberson, 8/10).This is part of the KHN Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.