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Perspectives

United States

Report | A performance model built to improve quality and financial well-being

Summary

​According to a new Moody’s Investors Service healthcare industry report, the prognosis for hospitals is none too rosy. Among the symptoms:

  • Sluggish economy with high unemployment and benefit cutbacks means that many Americans are deferring care. Median inpatient volume was down 0.4 percent in 2010, the second consecutive year of decline.
  • Stubborn unemployment translates into greater uncompensated care for hospitals to absorb as individuals lose their healthcare coverage.
  • A 0.4 percent decrease in Medicare rates in the past year, with corresponding Medicaid reductions in many states.
  • Lowered insurance rate increases from increasingly scrutinized commercial payors, which could affect the scope of their coverage.
  • Despite availability of new technologies, capital investment in hospitals has declined two years running after a long period of robust growth. The average of plant has climbed to 10.3 years, as healthcare organizations find their goals harder to afford.

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