A report by Moody's Investors Service found that non-profit hospitals improved margins and liquidity in 2009, but the ratings service still projects a negative outlook for these facilities, according to a report by the HFMA.
Although non-profit hospitals showed improvements in all major ratios and all rating categories in fiscal year 2009, compared to fiscal year 2008, margins and liquidity for the hospitals remained below peak 2005 levels, according to the HFMA report.
Despite these improvements, Moody's gave the hospitals a negative outlook citing the likely inability to maintain cost cutting efforts and a "sluggish economic recovery, growing levels of uncompensated care and flat volume trends," according to a Bloomberg Businessweek report.
Read more about the outlook for non-profit hospitals:
- Moody's Says FY 2011 Medicare Cuts Will Hurt Non-Profit Hospitals
- S&P Reports Find Non-Profit Hospitals' Finances Improved in 2009
Although non-profit hospitals showed improvements in all major ratios and all rating categories in fiscal year 2009, compared to fiscal year 2008, margins and liquidity for the hospitals remained below peak 2005 levels, according to the HFMA report.
Despite these improvements, Moody's gave the hospitals a negative outlook citing the likely inability to maintain cost cutting efforts and a "sluggish economic recovery, growing levels of uncompensated care and flat volume trends," according to a Bloomberg Businessweek report.
Read more about the outlook for non-profit hospitals:
- Moody's Says FY 2011 Medicare Cuts Will Hurt Non-Profit Hospitals
- S&P Reports Find Non-Profit Hospitals' Finances Improved in 2009