The U.S. not-for-profit 2007 healthcare system median ratios for rated hospitals demonstrate continued strength and some financial improvement, although the rate of increase has slowed from previous years, according to a Standard & Poor’s Ratings Services report published Aug. 3. In particular, the higher rating categories exhibited some volatility in financial results this year from industry pressures. The overall trend, however, continues to be generally positive, with the ratio of system upgrades and positive outlook revisions outpacing comparable ratios of stand-alone hospitals.
The report, U.S. Not-for-Profit Health Care System 2007 Median Ratios Point to Less Robust Growth Ahead, notes that revenue growth has continued despite soft volumes in many markets this year. Operating income, however, is flat across many rating levels, indicating pressure on expenses, especially surgical supplies, pensions, and bad debt. The bottom lines remain robust as the investment markets continue to yield substantial returns. Most hospitals continue to implement IT improvements, focus on both efficiency and improved quality of care, make liberal use of consultants to refine the revenue cycle, and continue to invest substantially in capital, although even the growth rate of those expenditures, which has been quite high in recent years, slowed somewhat in 2007. For more information, call 212-438-9823.
