Regulations

S&P Says Nonprofit Providers Are Financially Stronger

By Robert Sheen | September 17, 2015
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The Act, expansion and the wave mergers they have triggered have made the nonprofit healthcare sector financially stronger, according to the Standard & Poor’s ratings agency.

S&P changed its evaluation of the sector from “negative” to “stable,” saying that it expects the outlook for to be positive at least through 2016.

The agency noted that AA-rated nonprofit systems saw a $2.2 billion increase in revenues in 2014, and that in all ratings classes generated higher revenues.

Mergers are creating larger networks nonprofit which enjoy economies scale and increased financial strength, said S&P. By contrast, stand-alone nonprofit hospitals in all categories saw declines in revenues.

The expansion under the is helping nonprofit, according to S&P, because it has substantially reduced the amount uncompensated or “charity.”

The sector faces “continued uncertainty,” S&P noted, because industry-specific factors as well as “the unknown effects political changes state and federal policy due to future elections.”

Posted in Affordable Care Act, Affordable Care Act, Nonprofit, Regulations, Standard & Poor’s

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