Moody’s Is Pessimistic on Nonprofit Hospitals’ Fiscal Health
July 24, 2012 | Read Time: 1 minute
Credit-rating house Moody’s doled out more downgrades than upgrades for nonprofit medical centers in the first quarter of 2012, says Reuters.
The ratings agency said the slow pace of economic recovery, deep reductions in state spending, and the potential for Medicare and Medicaid cuts “translate into weak volumes and revenue declines” for nonprofit hospitals, prompting the pessimistic outlook.
Downgrades exceeded upgrades by a ratio of 1.33 to 1 among the 84 ratings Moody’s issued in the first three months of the year for nonprofit hospitals and health systems. The first quarter saw Moody’s downgrade $2.78-billion worth of nonprofit hospitals’ debt, compared to $2.11-billion that received higher marks.
