The US not-for-profit sector continues to carry a negative outlook due to established risks as well as in response to developing trends that have become more prominent since the beginning of the year, says Moody's Investors Service in a mid-year outlook report, "Not-for-Profit Healthcare Mid-Year 2012 Outlook: Strong Headwinds Continue."

"The established risks facing the industry primarily result from lower reimbursement levels that will come to fruition, with or without federal healthcare reform, and are driven by the unsustainable federal deficit and the rising share of federal spending for Medicare and Medicaid," said Moody's AVP-Analyst Daniel Steingart, author of the report, which also highlights several developing risks that contribute to the negative outlook, last updated in January.

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