Fitch: Standalone Children's Hospitals Have Strong Liquidity, Operating Profitability

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.

More Articles on Hospital Profitability:

5 Key Trends Hospitals Should Know for Cardiology Service Line Success

Moody's: 5.6% Medicaid Cuts Credit Negative for Florida Non-Profit Hospitals

Case Study: Increasing Surgical Volume, Profitability at a 380-Bed Hospital

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars