Fitch attributed the improvement to “a combination of improved investment returns, solid cash flow generation and lower capital spending.”
Non-profit hospitals’ profitability from core operations in fiscal 2010 was unchanged from the prior year, as incremental gains in labor use, supply cost and revenue-cycle management were equalized by wage increases and lower reimbursement increases.
Investment returns were better in fiscal 2010 compared with the year earlier period, gains are still below historical levels.
Related Articles on Hospital Finances:
Fitch Ratings Finds Positive Correlation Between Hospital Profitability and Advanced Health IT
Non-Profit Hospitals See Negative Outlook From Ratings Agencies Due to High Debt Loads, Lower Reimbursements, Uncovered Patients
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