A new report by Moody's Investors Service has found hospital credit rating downgrades are expected to outpace upgrades into 2011, according to an AHA News Now report.
In the third quarter of 2010, Moody's downgrades outpaced upgrades by a ratio of 1.6 to 1, and this trend is expected to continue into next year, according to the report.
According to a Moody's analyst cited in the report, many hospitals have already improved the efficiency of their operations, making improvements in that area more challenging. At the same time, hospitals continue to face volume declines, which negatively impact the bottom line.
Read the AHA News Now report on hospital credit ratings.
Read more coverage on hospital credit ratings:
- Moody's Downgrades 268 Nonprofit Healthcare Bonds, Citing Stricter Methodology
- S&P: Small Hospitals' Finances Improved in 2009
- S&P: More Hospitals Dropping to Speculative-Grade Financial Ratings
In the third quarter of 2010, Moody's downgrades outpaced upgrades by a ratio of 1.6 to 1, and this trend is expected to continue into next year, according to the report.
According to a Moody's analyst cited in the report, many hospitals have already improved the efficiency of their operations, making improvements in that area more challenging. At the same time, hospitals continue to face volume declines, which negatively impact the bottom line.
Read the AHA News Now report on hospital credit ratings.
Read more coverage on hospital credit ratings:
- Moody's Downgrades 268 Nonprofit Healthcare Bonds, Citing Stricter Methodology
- S&P: Small Hospitals' Finances Improved in 2009
- S&P: More Hospitals Dropping to Speculative-Grade Financial Ratings