Non-profit children’s hospitals’ specialization, high liquidity and history of strong philanthropic success earned them an average rating of “AA-” from Fitch in 2012, higher than the credit rating agency’s “A” rating for the non-profit hospital sector as a whole.
Despite their improving operating margins and stable debt levels, children’s hospitals are highly exposed to Medicaid. Still, they are often protected from Medicaid’s politically volatile payment cuts, and their specialization makes them attractive partners in integrated care agreements with other providers under the new payment models under health reform, according to the report.
More Articles on Children’s Hospitals:
Study: Low Nurse Staffing Ratios Reduce Pediatric Readmissions
Boston Children’s Strategy to Reduce Clinical Variation Cuts Costs by 20%
S&P: Ratios at Children’s Hospitals Still Strong, But Declining
