Will Healthcare Provider Debt Be The Next Financial Crisis?
The other day, I asked the question about hospital and health system debt as being the next financial crisis on several groups on LinkedIn. The response has been a resounding thud. The reason for the question was based on an article in Crain's Chicago Business , Monday, December 5, 2011, " New hospitals building debt", by Kristen Schorsch. It really got me to start considering the broader hospital and healthcare debt question in general, as healthcare continues to change in such dynamic ways. And I believe that the 800 pound gorilla in the room, locally and nationally, is hospital and other healthcare provider debt. It is no longer just a question of having an individual AAA rating. When you view the changes in the healthcare reimbursement from Medicare and Medicaid . Declining admissions. Changes in reimbursement from production-based to quality-based. Payers introducing pricing competition, though user-friendly tools, which allow healthcare consumers to compare price...