Fitch: Capital spending will rise for nonprofit hospitals

A growing number of U.S. nonprofit hospitals expect capital spending to increase in the next five years, according to a new capital expenditures report from Fitch Ratings.

Here are four things to know about the report.

1. Fifty-three percent of hospitals believe capital spending will increase in the next five years, compared to 45 percent in 2012.

2. The percentage of hospitals that anticipate issuing new bonds over the next two years decreased from 39 percent in 2012 to 29 percent in 2015.

3. IT remains the highest capital spending priority, but its importance has lowered relative to other priorities. Inpatient capacity continues to be the lowest priority. The priorities are consistent with the results of Fitch's 2012 survey.

4. Fitch Ratings Director Adam Kates said, "Increased certainty regarding the implementation of the PPACA following the Supreme Court's upholding of key provisions of the act, stable operating profitability during implementation of key PPACA provisions over the past three years and increasing patient consumerism are contributing to the increased projected capital spending."

More articles on finance:
Moody's: Entrance of nonprofit hospitals into health insurance will rise
Moody's affirms New Hanover Regional Medical Center's 'A1' rating
Fitch affirms Norman Regional Hospital Authority's 'BBB-' rating

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