A report released on Friday by Moody’s Investor Services found the approval of an $8 billion federal Medicaid waiver is a “credit positive” for hospitals.

New York last month received its long-sought Medicaid waiver, which Gov. Andrew Cuomo’s office, as well as New York City Mayor Bill de Blasio, insisted was needed to aid troubled hospitals.

The state had long argued it was due to receive the waiver due to reforms made by Cuomo’s Medciaid redesign.

From the Moody’s report:

“The approval of the waiver is a credit positive for Moody’s-rated hospitals and health systems within the state of New York. The funds will provide an additional source of revenue for hospitals at a time when they are facing reduced reimbursement from Medicare and Medicaid, lower commercial rate increases, and pressure from all payers to drive down costs and reduce avoidable hospital utilization.”

The waiver is most likely to impact safety-net providers that have successfully met a stated cost reduction and process improvement benchmarks under the Delivery System Reform Incentive Payment (DSRIP) program.