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January 23, 2013

Moody's Stays Bearish on Nonprofit Hospitals for 2013

For the fifth straight year, Moody's Investors Services has issued a negative assessment of the financial outlook for the nation's nonprofit hospitals, according to Reuters.

While mergers and partnerships have improved many hospitals' operating performance, slow revenue growth and potential reductions in federal spending and insurers' reimbursements dampen prospects in 2013, the credit-rating agency said in a statement Tuesday.

The persistent pessimism reflects "the lasting impact of the recession on patient volumes, significant challenges facing the industry resulting from changes in how hospitals are paid, and heightened pressure from businesses and all levels of government to lower the cost of health-care services," said Daniel Steingart, Moody's assistant vice president in a statement.