The decline in the financial health of not-for-profit hospital systems is likely to continue through 2009, says a new Standards & Poor’s report, citing an increase in credit rating downgrades and high number of negative rating outlooks. In fiscal year 2008, the credit rating agency found a broad decline in operating performance, debt service coverage and liquidity among the 142 hospital systems it rates.
“Since margins and cash flow were down, we expected to see a drop in debt service coverage, and we anticipate further deterioration in next year’s [median financial ratios] as the impact of the investment market turmoil is reflected in upcoming financial statements,” the report states.
[ via AHA News Now ]
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