Business

Nonprofits' health improves slightly

NEWS IN BRIEF — Posted Aug. 8, 2005

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The nonprofit health care sector is showing some signs of sustained financial improvement for the first time in several years.

In a report on July 12, Standard & Poor's said upgrades outpaced downgrades for two consecutive quarters -- the first time that has happened in more than five years. And in a July 7 report, Moody's Investors Service said it had 34 upgrades for nonprofit health care and 24 downgrades in the first two quarters of 2005.

Moody's said the primary reason for the improvement was a shift by nonprofit health care to focus more on core acute care operations while shedding other health care business lines, such as insurance.

But those in the industry cautioned that such financial pressures as increasing charity care and lower reimbursements remain.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2005/08/08/bibf0808.htm.

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