Advisory Board March 24, 2020
Moody’s Investors Service in a report released last week downgraded the financial outlook for nonprofit hospitals from stable to negative, mostly due to the new coronavirus’ projected financial strain on hospitals, Jeff Lagasse reports for Healthcare Finance News.
The outlook for nonprofit hospitals
At the end of 2019, Moody’s said nonprofit hospitals should expect see an increase in revenue in 2020, and upgraded the sector to a stable outlook.
However, in the new report, Moody’s reversed course.
Moody’s said nonprofit hospitals in 2020 will likely see less cash flow than they did in 2019 as a result of many hospitals cancelling profitable elective procedures and stopping other services to prepare for a surge in cases of COVID-19, the disease caused by the new coronavirus....