US Healthcare Reform May Harm Credit Ratings, Report Says

24 November 2009 (Last Updated November 24th, 2009 18:30)

The US Government's proposal to implement large cuts in Medicare funding may result in the downgrading of hospital credit positions of high-cost urban facilities, according to a report. The report by Moody's Investors Service said that the cost control measures will be negative for the

The US Government's proposal to implement large cuts in Medicare funding may result in the downgrading of hospital credit positions of high-cost urban facilities, according to a report.

The report by Moody's Investors Service said that the cost control measures will be negative for the credit position of many high-cost urban hospitals even if the number of insured patients expands.

Most of the 17 highest-cost hospitals are in urban areas with high unemployment and higher levels of poverty.

The report said stand-alone hospitals which depend on high-cost referral practices and do not gain many paying patients will be most affected.