A recent report from Fitch Ratings suggests a slower growth rate for for-profit hospitals for the rest of this year. One reason for this, they say, is the lack of Medicare expansion during an election year. Another reason is the increased focus on outpatient settings. Hospitals remain under pressure from employers, private insurers, and new payment models under health reform to keep people healthy and out of inpatient settings. This means more hospital revenue will come from the outpatient side of the business, which generates less revenue.
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