Medicare Cuts Could Take Greater Toll On Not-For-Profit Hospitals

Aug 11th, 2010 | By healthnews | Category: Health

Main Category: Medicare / Medicaid / SCHIP
Article Date: 11 Aug 2010 – 4:00 PDT

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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).

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