Strategies for improving quality and safety will likely improve operating results for hospitals in the short term, according to the Moody’s Investors Service report Improving Clinical Quality and Patient Safety of Greater Importance to Not-for-Profit Hospitals, released yesterday. In the long term, however, Moody’s analysts say hospitals that demonstrate a sustainable link between quality investments and better clinical outcomes will likely gain competitive advantage, thereby improving financial profit and possibly their bond ratings. Demonstrating quality, according to Moody’s, is not just meeting a particular quality indicator, but demonstrating improved consumer demand and preference, which drives market share, and payer reimbursement that rewards better outcomes, which drives performance. For more information on the report, contact Moody’s at (212) 553-4431.
