Here's more evidence, if we needed any, that not-for-profit hospitals are facing tough times. Last year, according to Moody's Investors Service, not-for-profit credit downgrades exceeded upgrades by a margin not seen since 2003; what's more, they faced the largest number of downgrades since 2001.
In 2008, not-for-profit hospitals received 27 credit upgrades, but also were hit with 53 credit downgrades, as compared with 40 upgrades and 31 downgrades the year before. Meanwhile, Moody's reported that 10 hospitals were being monitored for downgrades at the end of 2008, versus two at the close of 2007.
According to the firm, a rise in bad debt, a drop in patients seeking elective care and falling investment losses all contributed to the lower credit rating.
To learn more about the report:
- read this Modern Healthcare piece (reg. req.)
Related Articles:
Moody's says healthcare's vulnerable to economy's ills
Obama healthcare plan a plus for hospitals, Moody's says
Moody's ratings changes could raise healthcare credit ratings
Not-for-profit hospitals financially stable in '07, says Moody's