The second quarter saw more credit downgrades than upgrades at a four to one ratio. Moody’s Associate Analyst Jennifer Ewing said contributing factors include federal and state budget deficits, cuts to Medicaid and Medicare funding, flat patient volumes, poor payor mix and more uncompensated care, according to the report.
She also said Moody’s predicts credit downgrades will continue to overwhelm credit upgrades in the latter half of 2011, especially for small, independent hospitals.
Read the AHA News Now report on credit downgrades.
Related Articles on Credit Ratings:
8 Recent Hospital & Health System Credit Downgrades
Low Investment-Grade Hospitals Face Highest Borrowing Costs Since 2009
Moody’s: Rating Volatility in Healthcare At Lowest in 10 Years
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
