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June 02, 2015

Moody's Sees Brighter Fiscal Outlook for Nonprofit Hospitals

Nonprofit health systems saw median revenue rise by 4.7 percent in fiscal year 2014 and costs cut by a similar rate, according to a new report by credit-rating agency Moody's, Healthcare Finance News writes. The numbers represent a turnaround following years of gloomy projections for nonprofit and public hospitals' financial health.

Revenue growth last year jumped from an all-time low of 3.9 percent in 2013, a year that also saw tax-exempt health groups' costs rise by 5 percent. Analysts said hospitals are reaping fiscal benefits from continuing consolidation as well as elements of the Affordable Care Act, including Medicaid expansion and government-run insurance exchanges.