Hospitals face growing financial challenges, ratings agencies say

Accreditation Connection, January 27, 2012

Not-for-profit hospitals in the US face increasing financial pressures, two top credit rating agencies reported n January. Moody’s Investors Service reports that the outlook for hospitals looks negative for 2012, and Standard & Poor’s Rating Service says that “an increasingly difficult operating environment” will adversely impact hospital credit quality and ratings.

Among the challenges identified by Standard & Poor’s are tighter revenues, weaker payer mixes, lingering impact from the recession and health reform.

The Moody’s report can be found here; Standard & Poor’s can be found here (password required).

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