Chief Healthcare Executive March 7, 2025
Major reductions in Medicaid could weaken revenues and potentially change the outlook for the sector, Fitch Ratings says. Hospitals have urged Congress and President Trump to preserve funding.
Hospitals have been warning that cuts to Medicaid would hurt them financially, and now more financial analysts are echoing those concerns.
Fitch Ratings warns that major reductions in Medicaid would damage nonprofit hospitals financially. If Congress and the Trump administration put less in Medicaid, nonprofit hospitals would see less revenue, and “could pressure ratings and potentially the sector outlook,” Fitch said this week.
Nearly 80 million Americans rely on Medicaid for health care, and if fewer people have coverage, nonprofit hospitals will likely end up providing more uncompensated care. Most nonprofit hospitals...
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