Nonprofit Hospitals ‘In the Cross Hairs’ on Medicare Cuts

As “fiscal cliff” deficit-reduction talks continue in Washington, nonprofit health-care systems fear they will bear the brunt of cuts in spending on Medicare, The New York Times writes.

Congressional Republicans want deeper Medicare cuts than the $300-billion over 10 years outlined by President Obama. Democrats strongly oppose GOP proposals to save money by raising the eligibility age, instead favoring cuts structured around care providers—for example, reductions in payments to hospitals for some outpatient services.

Hospitals and other institutional care providers “will be in the cross hairs for more cuts,” said Lisa Goldstein, an analyst with Moody’s, which tracks the finances of nonprofit medical systems that issue bonds.

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