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Hospital Analysts predict that there will be no more revenue growth from expanded coverage due to the Affordable Care Act, as all of the benefits have been “essentially realized.” (Photo: Shutterstock)

Hospitals’ profitability margins are at a 10-year low as the patient mix skews more toward lower-paying Medicare beneficiaries, while other patients seek care elsewhere, according to Moody’s report, “Not-for-profit and public healthcare – US: Preliminary medians underscore negative sector outlook.”

The hospital industry’s median operating cash flow margin fell to 8.1 percent — levels not seen since during the 2008-09 recession – and Moody’s analysts expect the suppressed level will continue over the next year.

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Katie Kuehner-Hebert

Katie Kuehner-Hebert is a freelance writer based in Running Springs, Calif. She has more than three decades of journalism experience, with particular expertise in employee benefits and other human resource topics.

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