S&P Equity Research believes any cutbacks in proposed reforms would be generally negative for the heath care facilities providers, most notably the acute-care hospitals. While any scaling back of reform is expected to eliminate the $155 billion in reimbursement concessions already agreed to by the industry to help finance reform, it could also mean that the great majority of the uninsured do not get health insurance benefits, thus leaving the industry with no near-term solution for its most pervasive problem: uncompensated care or care for which it is not reimbursed, (uncompensated care currently comprise about 20% of total revenue). Moreover, in S&P Equity Research's view, with dramatic growth in health care expenditures and ensuing budgetary pressures, Medicare will likely be forced to seek future rate reductions from hospitals that would be even more severe than the $155 billion that had been agreed to.
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|SOURCE Standard & Poor's|
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