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September 11, 2015

S&P Sees Improved Fiscal Outlook for Nonprofit Hospitals

A new report by Standard & Poor's credits a wave of hospital acquisitions and Medicaid expansion for brightening the financial picture for nonprofit medical systems, Healthcare Finance News writes. Echoing similarly optimistic recent assessments by fellow credit-rating agencise Moody's and Fitch, S&P boosted its outlook for the sector from "negative" to "stable" in an analysis this week.

While standalone nonprofit hospitals continue to struggle, mergers are creating more fiscally sound health systems, driving strong gains in patient revenue last year, according to S&P. In states that have expanded Medicaid under the Affordable Care Act, nonprofit medical centers have seen a big drop in uncompensated care.