Hurricane Irma's credit ramifications for Florida's hospitals will develop over years to come, according to an analysis released Friday by Moody's Investors Service.
In the short term, hospitals affected by the hurricane will incur unbudgeted costs, including those for overtime and clean up, while at the same time losing revenue from canceled procedures and visits. In the longer-term, effects will depend on whether the hurricane causes changes to the local population base and how that impacts patient volumes, according to Moody's.
Irma impacted hospitals that are part of large systems headquartered outside of Florida, but given the size of the parent organizations, Moody's expects hurricane-related costs to be absorbable. However, smaller institutions may not fare as well.
"The storm will have a significant financial impact on some institutions, particularly smaller entities that suffered comparably more physical damage and had to close outpatient services for several days," according to Moody's.
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