Posts Tagged ‘non-profits’

Preserving Cash Helps Non-Profit Hospitals Prosper

Monday, December 21st, 2009

Twenty non-profit healthcare systems that preserved cash upgraded by Moody’s.  Non-profit healthcare systems and hospitals that received credit upgrades over the last year from Moody’s Investors Service  had deliberately – and wisely — taken efforts to preserve cash during the financial crisis.

In a recent report, Moody’s said that many of the 20 healthcare borrowers it has upgraded since October of 2008 experienced improvements in their operations and balance sheets.  Contributing to the gains were increased outpatient volume, efforts to contain costs and billing, as well as collection efforts.  Cuts to capital spending also had a positive impact on these healthcare systems’ bottom lines.  During the same timeframe, Moody’s downgraded 76 hospitals and healthcare systems.  The pace of downgrades has slowed over the last several quarters.

Healthcare systems and hospitals with upwards of $250 million in net patient revenue were most likely to receive upgrades.  One out of four with improved credit reported they had more than $1 billion in net patient revenue.