business
Financial future of nonprofit hospitals, health systems uncertain
NEWS IN BRIEF — Posted March 1, 2010
The fiscal health of nonprofit hospitals and health systems most likely will not bounce back from the recent recession until well after the broader economy does, according to reports issued by a pair of credit rating firms in January and February.
"Even with some economic recovery, we believe there could be a lag on the health care sector as the full effect of the downturn is still being felt by some hospitals," stated the "Annual Sector Outlook for Not-for-Profit Healthcare for 2010" published Jan. 28 by Moody's Investors Service.
Health care is usually a trailing economic indicator, and the Moody's report, along with one issued Feb. 1 by Fitch Ratings, said the economic picture for nonprofit hospitals and health systems most likely would not recover in the next 1½ years.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2010/03/01/bibf0301.htm.
