Financial Challenges in Future for Hospital Industry

Despite the challenges they face, U.S. hospitals have actually improved their financial status in recent years -- but that may be about to change, according to a new report. Moody's Investors Service, which rates not-for-profit hospital debt, has issued a warning that while hospitals appear to be financially stable in 2008, it's not clear what will happen in 2009 and 2010 if the economy takes a plunge.

The Moody report states that in years to come there will be rising numbers of uninsured and underinsured patients. Changes generated by the upcoming presidential election could also present financial dilemmas for the hospital industry. To weather the storm, hospitals are looking at mergers as well as other strategic funding solutions such as Medical Accounts Receivable (MAR) Funding as a way to increase cash flow to expand and/or upgrade facilities.