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BOSTON The health care cost control law signed by Gov. Deval Patrick Monday will hurt the bottom lines of Massachusetts hospitals and limit their flexibility to grow, a major credit rating agency warned Monday. <\/p>\n
\"The Legislation is credit negative for Massachusetts hospitals because it will limit their revenue growth and reduce their operating flexibility,\" Moody's Investment Services wrote in a credit analysis of the new law. <\/p>\n
The report also suggested the money derived from a $225 million one-time assessment on health plans and major health care providers to help support community hospitals would artificially work to keep smaller hospitals in business, while limiting the expansion opportunities for larger hospital groups and hurting their credit standings. <\/p>\n
\"Another negative credit effect of the bill is that the state will use an excise tax on insurers to support smaller and less profitable hospitals, potentially allowing them to remain in business longer than would otherwise be possible and limiting the ability of larger systems to consolidate and grow through acquisitions,\" Moody's wrote. <\/p>\n
Joined by legislative leaders, Patrick signed the new law Monday. Supporters say it will build off the successes of the 2006 law that has led to more than 98 percent of residents having health insurance. <\/p>\n
The Massachusetts Hospital Association called the law \"immensely complex.\" <\/p>\n
After the News Service inquired about the Moody's analysis, the association said in a statement: \"The hospital community supports the law's objectives and praises many of its provisions, even as we have expressed concerns regarding select provisions. And we pay attention to Moody's perspective. But we believe that the best way to handle the issues that Moody's raises, and our other concerns, is to work thoughtfully and collaboratively with policymakers and stakeholders to address them and avoid the hazards ahead, allowing the full potential in this law to be realized.\" <\/p>\n
The hospital group said it will be a \"challenge\" to successfully implement the law, but said \"overcoming challenges in Massachusetts healthcare is what we all do best. Thoughtful collaboration got us this far and it will get us the rest of the way.\" <\/p>\n<\/p>\n
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Rating agency: New health law 'credit negative' for hospitals<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Home > News BOSTON The health care cost control law signed by Gov. Deval Patrick Monday will hurt the bottom lines of Massachusetts hospitals and limit their flexibility to grow, a major credit rating agency warned Monday Continue reading