Analyst: Health Reform Law Repeal A Net-Negative For Hospitals

Earlier Thursday, Moody’s put out a report looking at how for-profit hospitals would fare should the Supreme Court overturn the health reform law. The short answer: Their credit ratings would get slammed.

“The largest impact of repeal is that, if you take away the mandate, you don’t get the coverage expansion expected under the legislation,” says Dean Diaz, a vice president at Moody’s who focuses on for-profit hospitals and wrote the report. “That, in turn, leaves hospitals with increasing uncompensated care costs.”

In discussions about repeal, much of the focus is on health insurance companies. They are, after all, the ones who stand to be most directly impacted by the repeal of a requirement to buy insurance.

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