Fitch: U.S. NFP Children's Hospital Medians Exceed General Acute Care Medians

NEW YORK--(BUSINESS WIRE)-- Standalone children's hospitals are unique within the larger U.S. hospital and healthcare system from a financial, operational, societal and political perspective, according to Fitch Ratings in a new report.

The average Fitch rating for standalone children's hospitals is 'AA-', which is higher than the average 'A-' throughout Fitch's general hospital and health system universe. The higher average rating reflects children's hospitals' robust liquidity, unique market positions, strong philanthropic support, and specialized clinical services.

In a newly released special report, Fitch generated median ratios exclusive to stand alone children's hospitals for 2009, 2010 and 2011. Compared to Fitch's 2011 hospital and health care medians, median ratios for children's hospitals reflect strong liquidity, improved operating profitability and robust capital spending. High exposure to Medicaid payors is a primary credit concern. This makes children's hospitals highly sensitive to budget cuts at the state and federal level. However, children's hospitals have typically been protected against funding reductions and/ or reimbursement cuts under the Medicaid program.

'Median Ratios for Not for Profit Children's Hospitals,' is available at 'www.fitchratings.com' or by clicking on the above link

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'2012 Outlook: Nonprofit Hospitals and Healthcare Systems Outlooks (Dec. 15, 2011);

--'2011 Median Ratios for Nonprofit Hospitals and Healthcare Systems (Aug. 25, 2011);

--'Nonprofit Hospitals and Health Systems Rating Criteria (Aug. 12, 2011);

--'Revenue-Supported Rating Criteria (Jun 20, 2011

--'Enhanced Accountability and Financial Performance' (May 17, 2011).

Applicable Criteria and Related Research: Median Ratios for Not-for-Profit Children's Hospitals

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=678540

2012 Outlook: Nonprofit Hospitals and Healthcare Systems

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=659704

2011 Outlook: Nonprofit Hospitals and Healthcare Systems

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=599605

Nonprofit Hospitals and Health Systems Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648836

Revenue-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=637130

Enhanced Accountability and Financial Performance

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=626889

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KEYWORDS:   United States  North America  New York

INDUSTRY KEYWORDS:   Health  Hospitals

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