Liquidity at today's hospital is of utmost importance, both in the eyes of the CFO and credit rating agencies.
More specifically, days cash on hand is a common metric that gives a snapshot of how many days of operating expenses a non-profit hospital could pay with its current cash available. Here are 13 statistics on hospital days cash on hand from Moody's Investors Service's recent fiscal year 2011 report.
Note: The following data are based on audited financial statements for 400 hospitals and single-state health systems within Moody's database.
• Overall median days cash on hand: 165
• Overall mean DCOH: 183.1
• Maximum recorded DCOH in Moody's sample: 521
• Minimum recorded DCOH in Moody's sample: 10.9
• Median DCOH for "Aa2"-rated hospitals: 277.8
• Median DCOH for "Aa3"-rated hospitals: 235.5
• Median DCOH for "A1"-rated hospitals: 204.4
• Median DCOH for "A2"-rated hospitals: 194.6
• Median DCOH for "A3"-rated hospitals: 168.5
• Median DCOH for "Baa1"-rated hospitals: 133
• Median DCOH for "Baa2"-rated hospitals: 124.9
• Median DCOH for "Baa3"-rated hospitals: 108.5
• Median DCOH for hospitals with ratings below "Baa": 76.4
More specifically, days cash on hand is a common metric that gives a snapshot of how many days of operating expenses a non-profit hospital could pay with its current cash available. Here are 13 statistics on hospital days cash on hand from Moody's Investors Service's recent fiscal year 2011 report.
Note: The following data are based on audited financial statements for 400 hospitals and single-state health systems within Moody's database.
• Overall median days cash on hand: 165
• Overall mean DCOH: 183.1
• Maximum recorded DCOH in Moody's sample: 521
• Minimum recorded DCOH in Moody's sample: 10.9
• Median DCOH for "Aa2"-rated hospitals: 277.8
• Median DCOH for "Aa3"-rated hospitals: 235.5
• Median DCOH for "A1"-rated hospitals: 204.4
• Median DCOH for "A2"-rated hospitals: 194.6
• Median DCOH for "A3"-rated hospitals: 168.5
• Median DCOH for "Baa1"-rated hospitals: 133
• Median DCOH for "Baa2"-rated hospitals: 124.9
• Median DCOH for "Baa3"-rated hospitals: 108.5
• Median DCOH for hospitals with ratings below "Baa": 76.4
More Articles on Days Cash on Hand:
Credit Downgrades: How Could They Impact a Hospital's Capital Structure?
Why Cash is King: Q&A With Dawn Javersack, CFO of Boca Raton Regional Hospital
8 Tips to Improve Your Hospital's Operating Margin