According to Moody’s Investors Services most recent special comment on the company’s preliminary FY07 median ratios for not-for-profit hospitals, the medians indicate that financial measures for hospitals remain sound, although key volume measures and revenue growth continue to moderate.
This could be suggesting that operating pressures may result in more stressed bottom-line results in the near future. Consequently, the service expects the full year FY07 medians to be weaker than the preliminary medians data presented in the March 2008 special comment. The service also suggests that the multi-year improvement in liquidity could end or taper off this year due to weaknesses in both equity and fixed income markets.
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