Incentives could boost credit ratings for non-profits

A new report from Moody's Investors Services draws the conclusion that quality incentives could potentially translate into a credit-rating boost for not-for-profit hospitals. According to Moody's, when hospitals work to improve quality, it can result in improved operations, higher patient volume and market share, better rates from health plans and ultimately, an improved financial picture. 

When Wall Street takes an interest in a clinical topic like quality improvement, this is big news, as it suggests that hospitals participating in P4P programs have more at stake than simply pleasing the health plans and employers they serve. Not only that, it can only validate and further speed the efforts of CMS to push Medicare in a pay-for-performance direction. All told, this report should have some interesting repercussions.

To learn more about the report:
- read this Modern Healthcare piece (reg. req.)

Related Articles:
Financial challenges in future for U.S. hospitals. Report
Ratings firms slam nonprofit hospital finances. Report

Suggested Articles

The profit margins and management of Community Health Group raise questions about oversight of managed care insurers.

Financial experts are warning practices about the pitfalls of promoting medical credit cards to their patients.

A proposed rule issued by HHS on Tuesday would expand short-term coverage, a move Seema Verma said will have "virtually no impact" on ACA premiums.