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Insurance business problematic for nonprofit hospitals

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Not-for-profit integrated health systems combing hospitals, physician groups and health insurance operations generally reported surpluses in 2015, but, Modern Healthcare reports, the margins were  much tighter than in 2014.

Being in the insurance business is part of the problem.

“We have seen some of the hospital systems new to insurance have really stubbed their toe,”  Jim LeBuhn, a senior director at Fitch Ratings who tracks not-for-profit hospitals, told Modern Healthcare “And that is partly because they are just new to it, and they don’t have as diversified a book of business.”

For the Modern Healthcare article, please hit this link.

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