Medicare Advantage growth could be challenging for hospitals

Medicare Advantage growth could be challenging for hospitals

Medicare Advantage growth could be challenging for hospitals

The Medicare Advantage program recently achieved the milestone of covering more than half of all Medicare beneficiaries, but according to a report from S&P Global Ratings, this could have an adverse impact on hospital margins.

That in turn could be a negative credit factor for certain healthcare service companies – the most stressed segment within S&P’s rated for-profit healthcare universe. The firm said hospitals are the most negatively affected healthcare services subsector.