As the financial market speculates about the impact of president-elect Barack Obama’s proposed economic initiatives, Moody’s Investors Services issued a report late last week forecasting that his election will provide a boon to United States’ hospitals.
The report, U.S. Healthcare Industry: Credit Implications of the U.S. Election, holds that the president-elect’s plan to extend healthcare to uninsured Americans will result in an increase in revenues for healthcare providers.
The ratings agency estimates that the annual cost of the plan could be on the order of $100 billion to $200 billion, inclusive of participant contributions, on top of current annual government spending of about $800 billion.
Moody’s also noted that the agenda of the Democratic party includes increasing research funding and providing $10 billion over five years to healthcare providers to build up electronic-information systems.
Because the plan would increase the number of insured patients and the amount of reimbursements for care, hospitals could benefit directly and indirectly, Moody’s said.
The firm warned that the president-elect's plan may take years to implement as the country tries to untangle its current economic difficulties.