As hospitals focus their attention to accountable care measures, physician alignment and other healthcare reform initiatives, capital projects are becoming less of an emphasis.
Consequently, the average age of plant for standalone hospitals has risen by almost a full year since 2006. Hospital executives are becoming more cautious with big capital projects, such as a building a new inpatient bed tower, because they want to make sure a project of that size and scope will be worth the money. And in era of healthcare reform, a concept that is discouraging inpatient stays, the average age of plant has consequently gone up on average.
Here are 11 statistics on the average age of hospital plant over the past several years from two credit rating agencies, Standard & Poor's Ratings Services and Moody's Investors Services. Note: All data are medians. S&P's data reflects only standalone hospitals in its portfolio, while Moody's data reflects standalone hospitals and single-state health systems in its portfolio.
S&P average age of hospital plant medians (years)
2006: 9.6
2007: 9.7
2008: 9.8
2009: 9.8
2010: 10.0
2011: 10.4
Moody's average age of hospital plant medians (years)
2007: 9.9
2008: 9.8
2009: 9.9
2010: 10.2
2011: 10.5
Consequently, the average age of plant for standalone hospitals has risen by almost a full year since 2006. Hospital executives are becoming more cautious with big capital projects, such as a building a new inpatient bed tower, because they want to make sure a project of that size and scope will be worth the money. And in era of healthcare reform, a concept that is discouraging inpatient stays, the average age of plant has consequently gone up on average.
Here are 11 statistics on the average age of hospital plant over the past several years from two credit rating agencies, Standard & Poor's Ratings Services and Moody's Investors Services. Note: All data are medians. S&P's data reflects only standalone hospitals in its portfolio, while Moody's data reflects standalone hospitals and single-state health systems in its portfolio.
S&P average age of hospital plant medians (years)
2006: 9.6
2007: 9.7
2008: 9.8
2009: 9.8
2010: 10.0
2011: 10.4
Moody's average age of hospital plant medians (years)
2007: 9.9
2008: 9.8
2009: 9.9
2010: 10.2
2011: 10.5
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