Standard & Poor’s: Prospects For Small Hospitals Better
SAN FRANCISCO—While not-for-profit small hospitals have improved their operations in the past year, speculative-grade health care providers in the U.S. continue to face many challenges, according to Standard & Poor’s Ratings Services reports.
Lower-rated providers face such challenges as operating losses, weak demographics, limited business position, high debt, and low liquidity.
Additionally, they often have aging facilities that require high capital spending that some providers cannot
afford. Industrywide, financial and operational difficulties tend to be more problematic for
lower-rated providers because those providers are more likely to lack the operational flexibility and balance sheet cushion needed to withstand additional strain, according to Standard & Poor’s.
Regarding the larger percentage of downward rating actions in the speculative-grade category and more providers joining the ranks, Standard & Poor’s credit analyst Kenneth Gacka said in a report: “We believe these rating trends will likely continue over the near to medium term.” See “Volatile Times Continue For Speculative-Grade Health Care Providers.”
“We believe that the sector’s response to the recession, which focused on tightening expenses and strengthening service lines, have helped small hospitals improve operating margins,” said credit analyst Avanti Paul in the report, “U.S. Not-For-Profit Small Hospitals Move Toward Stability.”
Source: Standard & Poor’s media division.
To sign up for Mississippi Business Daily Updates, click here.
Top Posts & Pages
- Chris McDaniel gets a thank you note from Travis Childers
- Nehi Bottling Company has been a Cleveland fixture for 85 years
- UPDATED: House subcommittee tosses discrimination elements from religious freedom bill
- States settle with manufacturers in DRAM price-fixing case
- Quapaw Canoe Company gains legislative support in battle with tax department
- Reactive Surfaces files lawsuit against Toyota in patent dispute
- The link between education and economic development
- District at Eastover takes shape with financing in place, tenant signings under way
- Expeditors working out logistics to open Jackson office next month