S&P: Ebola adds healthcare costs but won't lead to rating actions for now

Standard & Poor's Ratings Services recognizes Ebola preparedness will result in additional financial expense for many healthcare providers, but it does not anticipate any rating actions due to Ebola-related expenses in the near future.

There is a lot of uncertainty about the financial impact Ebola will have on hospitals and health systems across the country, since the spread of the virus could be contained or it could continue to spread.

If the spread of Ebola is contained, S&P believes the virus would have a modest and incremental credit impact on the healthcare sector.

However, if the virus continues to spread, the financial impact cannot be determined at this time because there is uncertainty about how the healthcare industry would respond. For example, it is still unclear what the additional costs for equipment to treat the virus would be and whether hospitals will face a stigma from treating Ebola patients.

Although Ebola could have a negative effect on hospitals and health systems that treat patients with the virus, it could have a positive financial impact on some healthcare industry suppliers, such as those that provide protective gear.

More articles on Ebola:


Physicians already disapprove of Obama's new 'Ebola czar'
Nebraska Medical Center to release patient treated for Ebola
Flu? Ebola? Sorting out viral cases during Ebola scare could strain ED capacity 

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