As hospitals around the country continue to consolidate and streamline operations, a leaner healthcare industry is also becoming more profitable. Moody’s Investors Service Monday said there’s a stable outlook for the U.S. for-profit hospital sector.
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“This is very similar to what we saw in the early 90’s when HMO’s drove consolidation and duplication out of the system. Once these one time gains are realized the hard work of creating a much more efficient, which by definition will be more integrated, system begins. As we saw the early gains of the 90’s evaporate with time version 2 with bundled payments is putting the onus on the providers and not just on the plans as in version 1.” Shawn Evans, DC Risk Solutions