Dive Brief:
- The credit rating agency Moody's Investor's Service has raised the outlook on nonprofit hospitals from "negative" to "stable."
- The upgrade is the first since 2008.
- Demand among the newly insured and issues caused by a virulent flu season were among the reasons cited for the change.
Dive Insight:
The nonprofits also have been reducing bad debt as demand for their services have increased, Moody's noted. That's particularly true in -- no surprise here -- states that have expanded Medicaid.
Moody's also said the hospitals have done a better job of managing expenses, but it warned the growth could be temporary. Eventually, the new demand for services will stabilize and revenue won't grow as quickly.