The folks at Moodys Investors Service, the big credit-rating agency, took a look at the impact of reimbursement cuts in the federal health-care law could have on the companies it covers. And they found that the cuts could pose an enormous credit risk for some health-care companies. See the Dow Jones Newswires story here.

Medicare pays more than $300 billion to providers annually, covering the care of more than 40 million Americans. About 70% of corporate health providers rely on Medicare and Medicaid for more than one-third of their revenue.

Certain industries stand to face the sharpest cuts in government money, Moodys says, namely home health, as well as oxygen and durable equipment companies. Hospice care, nursing homes and specialty hospitals are also expected to lose millions off what they receive now. Moodys says we can expect consolidation in health industries, as providers acquire different health-care entities to diversify.

The entities less likely to face severe trims: inpatient hospitals, contrary to what hospital associations and most CEOs complain about. Moodys buttresses their point with a list of for-profit hospital entities that have been assigned stable outlooks. The report doesnt measure what these cuts might mean for already struggling nonprofits.

We reached out for comment to the American Hospitals Association and the Federation of American Hospitals, which represents for-profit hospitals, and well update the post if we hear back.

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