- 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.
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.