Issue link: https://beckershealthcare.uberflip.com/i/576097
50 FINANCE Moody's Revises Outlook for Nonprofit Healthcare to Stable From Negative By Ayla Ellison M oody's Investors Service has revised the outlook for the U.S. nonprofit and public healthcare sector to stable from negative. e outlook on the sector had been negative since 2008, and Moody's cited a number of factors that caused the outlook to be upgraded. "e outlook revision represents significant gains in the num- ber of people with insurance, growing patient volumes, and size- able reductions in bad debt that are contributing to very strong growth in operating cash flow," said Daniel Steingart, vice presi- dent and senior analyst at Moody's. e outlook change expresses Moody's views for the sector will neither erode nor significantly improve in the next 12 to 18 months. However, Moody's did note that there are long-term pressures on the sector. n CBO: Federal Healthcare Spending Will Reach 6.2% of GDP by 2025 By Ayla Ellison F ederal spending on Medicare, Medicaid, the Children's Health Insurance Program and health insurance exchange subsides will rise to 6.2 percent of the country's gross domestic product in 2025, up from 5.2 percent this year, according to budget projections from the Congressional Budget Office. Outlays for Medicare, Medicaid, CHIP and insurance subsidies are expected to be $110 billion this year, a 12 percent increase over 2014, according to the CBO. Outlays for Medicare will remain near 3 percent of GDP through 2018 and then increase each year through 2023, when they will likely total 3.7 percent. Spending on subsidies for health insurance purchased through exchanges will increase from 0.2 percent of GDP in 2015 to 0.4 percent in 2017, where the CBO expects it to remain it to remain through 2025. Federal outlays for Medicaid are stable relative to GDP for the next 10 years, totaling about 2 percent in each year. n 9 Hospital Bankruptcies, Closures By Ayla Ellison H ere are nine hospitals and health systems that filed for bankruptcy protection or closed since June. 1. Nye Regional Medical Center in Tonopah, Nev., closed it doors Aug. 21 due to financial troubles. The hospital has been struggling financially for years, and those troubles forced the facility to file for chapter 11 bankruptcy in Decem- ber 2013. 2. Saint Michael's Medical Center in Newark, N.J., filed for chapter 11 bankruptcy protection Aug. 10. The hospital is on track to post a $24 million operating loss this year. 3. Southern Regional Medical Center in Riverdale, Ga., filed for chapter 11 bankruptcy protection July 30. 4. Cheverly, Md.-based Dimensions Healthcare System an- nounced plans to close 106-bed Laurel (Md.) Regional Hos- pital and replace it with an ambulatory services center. The ambulatory care center, which will offer emergency services, outpatient surgery and diagnostic imaging, is expected to be open on the hospital site by 2018. 5. Doctors Hospital of Michigan in Pontiac filed for chapter 11 bankruptcy protection July 24. 6. Parkview Adventist Medical Center in Brunswick, Maine, filed for chapter 11 bankruptcy protection June 16. The hos- pital, which has been struggling financially for years, closed its inpatient care facilities and emergency department a few days after its filing. Those services were moved to Brunswick, Maine-based Mid Coast Health Services — a system Parkview has since merged with. 7. The Woodlands, Texas-based Victory Healthcare filed for chapter 11 bankruptcy protection June 12. The system man- ages six for-profit medical and surgical centers in Texas. 8. Boston-based Partners HealthCare announced it will close its Union Hospital in Lynn, Mass. 9. Escondido, Calif.-based Palomar Health's board of direc- tors voted June 24 to shut down its hospital in downtown Escondido. n