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
- Molpus closes Fund after more than $662M in commitments
- Realtors chooses Nita Wingard
- DeSoto County Supervisor Lee dies in ATV accident on his birthday
- No debate, but Cochran and Childers lobby for votes for Senate
- Politics of paying for transportation: Hand wringing and a lot of talk
- Entergy agrees to cut $35M from its new rate plan
- MSU reminding fans that drones are prohibited at football games
- Ford Foundation gives to UM for new science building
- Kemper County plant will cost at least another $496M to complete