What exactly will proposed changes in the way the government reimburses healthcare providers for treating Medicare patients mean for the future of hospitals? There are many theories. Some argue that things will even themselves out in the end. TheStreet.com's Melissa Davis counters that the new rules could seriously impact a sector which is doing very well these days.
Davis quotes UBS analyst Kevin Weakley, who argues, "If CMS is successful in altering the [diagnosis-related group] system such that it achieves tight, normal distribution of profit margins across all DRG codes, then forward projections for hospital economics will likely lose ALL of their reliability."
- see this story from TheStreet.com