Despite the for-profit hospital operators' recent favorable performance in the face of economic headwinds, the sector's operating environment is likely to remain challenged over the near term, according to Moody's Investors Service.
Overall, fundamental factors driving Moody's negative outlook over the next 12 to 18 months include the expectation of challenges in growing volumes, increasing exposure to growing uncompensated care costs, and the sustainability of pricing increases.
The health care reform debate adds uncertainty to the sector's outlook, the report noted. Hospitals will also suffer because those who have lost health insurance may delay non-urgent care.
