11 Statistics on Hospital Debt-to-Capitalization Ratios

For most hospitals and health systems, debt-to-capitalization ratios fell between 2009 and 2011 as many organizations looked to refinance debt and build cash on hand.

Debt-to-capitalization is the hospital's long-term debt divided by the sum of long-term debt and unrestricted net assets. This ratio essentially shows how much debt a hospital has compared to the hospital's overall equity.

Here are 11 statistics on median hospital debt-to-capitalization ratios over the past several years from two credit rating agencies, Standard & Poor's Ratings Services and Moody's Investors Service. Note: All data are medians. S&P's data reflects only standalone hospitals in its portfolio, while Moody's data reflects standalone hospitals and single-state health systems in its portfolio.

S&P median hospital debt-to-capitalization ratios

2006: 37.4 percent
2007: 36.1 percent
2008: 39 percent
2009: 39 percent
2010: 38.1 percent
2011: 36.9 percent

Moody's median hospital debt-to-capitalization ratios
2007: 37.6 percent
2008: 41.1 percent
2009: 42.1 percent
2010: 41.6 percent
2011: 40.4 percent

More Articles on Hospital Finance:

S&P: Ratios at Children's Hospitals Still Strong, But Declining
11 Statistics on Hospitals' Accounts Receivable
Scottsdale Healthcare CFO Todd LaPorte: 5 Ways to Approach Your Credit Rating Meetings

Copyright © 2022 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars