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Moody’s Investors Service: Outlook for Nonprofit Hospitals in 2020 Changes from Negative to Stable

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Moody's predicts 2020 will be a good year for nonprofit hospitals in Florida. Photo: Flickr Creative Commons

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. 

“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.

To listen to the full story, please click on the clips above.

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Danielle Prieur

About Danielle Prieur


Danielle Prieur is a general reporter for 90.7 News. She studied journalism at Northwestern University's Medill School of Journalism and interned at 101.9 WDET. She is originally from the metro Detroit area.