Hospitals and health systems, particularly those with weaker financial profiles, could face further negative impact if lawmakers fail to properly address the U.S. debt ceiling crisis, Fitch Ratings warned in a Feb. 13 release.
Payments to healthcare providers could also be affected if funding for Medicare and Medicaid was disrupted following a potential default by the U.S. government.
Any decision not to eventually address the debt ceiling is unlikely, Fitch concedes, but, should any political interference make it more likely for interest payments to be missed, for example, "we would likely assign a Rating Watch Negative to the U.S. government to signal a possible credit rating downgrade."
Fitch said the government has until sometime in June to address the debt ceiling issue. If the run-up to that date proves rocky, this won't be reassuring for any U.S. companies.
"Protracted negotiations that ultimately result in raising or suspending the debt ceiling could still lead to heightened market volatility and higher borrowing costs for U.S. corporates," Fitch said.