A new report by Fitch Ratings has found that the credit quality of non-profit California hospitals remains strong despite the severity of the economic downturn and other operating challenges unique to the state, such as California's mandate to seismically retrofit or replace hospital facilities and having one of the lowest Medicaid reimbursement rates, according to a Fitch news release.
As of Oct. 2010, Fitch rated 24 California-based hospitals and health systems, with the rating distribution heavily weighted on the higher end of the scale compared with Fitch's overall hospital portfolio. Of the 24 ratings, 16 are rated in the 'A' category or higher, seven in the 'BBB' category, and one 'D' (bond payment default by Valley Health System in Hemet, Calif.), according to the release.
As a class, Fitch-rated California hospitals have operating cash flow margins that outperform Fitch-rated hospitals nationwide. The median total operating revenue of the California acute care hospitals is $1.35 billion, compared with the nationwide median of $506 million.
Read the Fitch release on California hospitals.
Read more coverage on California hospitals:
- California Hospitals Change, Examine Executive Incentive Plans
- California's Palm Drive Hospital to Sell $10 Million in Bonds
- Valley Health System in California Files Debt Adjustment Plan
As of Oct. 2010, Fitch rated 24 California-based hospitals and health systems, with the rating distribution heavily weighted on the higher end of the scale compared with Fitch's overall hospital portfolio. Of the 24 ratings, 16 are rated in the 'A' category or higher, seven in the 'BBB' category, and one 'D' (bond payment default by Valley Health System in Hemet, Calif.), according to the release.
As a class, Fitch-rated California hospitals have operating cash flow margins that outperform Fitch-rated hospitals nationwide. The median total operating revenue of the California acute care hospitals is $1.35 billion, compared with the nationwide median of $506 million.
Read the Fitch release on California hospitals.
Read more coverage on California hospitals:
- California Hospitals Change, Examine Executive Incentive Plans
- California's Palm Drive Hospital to Sell $10 Million in Bonds
- Valley Health System in California Files Debt Adjustment Plan