Reports Show Weakness in Nonprofit Hospitals’ Fiscal Health
July 28, 2009 | Read Time: 1 minute
Two reports released this month show how hard the recession is hitting nonprofit hospitals, according to the American Medical Association’s American Medical News.
According to a July 7 Standard & Poor’s report, 60 nonprofit health institutions saw their credit ratings downgraded in 2008, compared to 35 the previous year, and median operating margins in the field declined from 2.5 percent to 1.8 percent. Experts attributed the weakening performance to investment losses, which in the past made up for declines in operating income.
The Bureau of Labor Statistics reported on July 2 that job creation in the field has declined 30 percent, from 30,000 jobs a month in the first half of 2008 to 21,000 so far this year.
