From 2009 to 2011, standalone children's hospitals experienced improved operating margins, robust capital spending and strong liquidity due to their unique roles in the U.S. healthcare system, according to a report from Fitch Ratings.
Standalone children's hospitals sit in exclusive market positions, have specialized clinical services and engender strong philanthropic support, which gives them a unique financial, operational, societal and political perspective, according the report.
The median Fitch rating for a standalone children's hospital is AA-, which is higher than the average A- across all Fitch hospitals and health systems.
Potential Medicaid cuts are the only major credit concern for these types of children's hospitals, but the report said children's hospitals have typically been protected against Medicaid reimbursement cuts.
Standalone children's hospitals sit in exclusive market positions, have specialized clinical services and engender strong philanthropic support, which gives them a unique financial, operational, societal and political perspective, according the report.
The median Fitch rating for a standalone children's hospital is AA-, which is higher than the average A- across all Fitch hospitals and health systems.
Potential Medicaid cuts are the only major credit concern for these types of children's hospitals, but the report said children's hospitals have typically been protected against Medicaid reimbursement cuts.
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