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Moody’s Investors Service is improving its outlook for nonprofit hospitals in Florida from negative to stable. 

The reason is higher Medicare reimbursement rates. 

Moody’s says it expects the higher rates will nudge up operating cash flow next year for nonprofit hospitals from 2 percent to 3 percent.  

Here’s Moody’s Vice President Dan Steingart. 

1/3: 2020 outlook for not-for-profit #hospitals revised from negative to stable with operating cash flow growth improving due to stronger revenue growth #MoodysOutlooks #muniland #healthcare https://t.co/GVyh5JbSmu pic.twitter.com/afhu2wD5bd

— Moody’s US Public Finance (@MoodysUSPubFin) December 10, 2019

“The more Medicare exposure you have in your payer mix, the more Medicare patients you have as a hospital, the more you’re going to benefit from the increases in Medicare inpatient and outpatient rates this year.”

Steingart says hospitals near retirement communities stand to benefit the most. 

“Those markets will be more exposed to that. But obviously that’s not all of Florida that’s just certain concentrated areas. The rest of households in Florida would be more generally exposed to the industry changes and factors that we’re looking at.”

He says other hospitals will benefit from increased commercial insurance reimbursement rates and a consolidation of smaller hospitals.

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