Report: Economic Status Back Up for Stand-Alone, Not-For-Profit Hospitals
Stand-alone, not-for-profit hospitals in 2009 returned to their pre-recession economic status, after three years of declining financial reports, according to a report by Standard & Poor's, HealthLeaders Media reports.
The trend is expected to continue through 2010, despite the uncertainty still associated with the economy and the health system overhaul.
S&P said that stand-alone, not-for-profit hospitals have qualified as a good credit risk over the past 10 years, but that the recession created a challenging economic environment for them.
According to the group, the improvement in 2009 is shown by fewer credit rating downgrades in the first half of 2010, and almost as many upgrades as downgrades.
Influence of Fiscal Year
The report also found that hospitals' financial performances reflected their respective fiscal years.
Hospitals that had fiscal years ending on June 30, 2009, were more likely to report lower earnings than those with fiscal years ending on Dec. 31, 2009, by which time investment markets began to improve (Commins, HealthLeaders Media, 7/22).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.