Healthcare Financial News

A joint partnership that helped reduce the number of healthcare-associated infections in Michigan saved more than 1,500 lives and $200 million, as described in the first in a series of healthcare “success story” reports, released on July 13 by the U.S. Department of Health and Human Services (HHS). The report describes the Michigan Keystone ICU Project, a joint partnership between the Michigan Health & Hospital Association and the Johns Hopkins University.

The Michigan Keystone ICU Project worked to reduce catheter-related bloodstream infections in over more than 100 intensive care units in the state by promoting use of a simple checklist during catheter insertions.

The American Recovery and Reinvestment Act included $50 million in grants available for states to help fight healthcare-associated infections. HHS Secretary Kathleen Sebelius called on hospitals across the country to commit to reducing central line-associated bloodstream infections in ICUs by 75 percent over the next three years by using the checklist from the Michigan Keystone ICU Project.

Despite being the third quarter in a row to register more downgrades than upgrades in the not-for-profit healthcare sector, the majority of rating activity in the second quarter of this year took the form of affirmations, also continuing a longstanding trend, says Moody's Investors Service in a quarterly report on industry rating activity.

It was the third consecutive quarter in which downgrades well surpassed upgrades—17 to 4—resulting in a wide 4.3 to 1 margin, compared to 19 to 5 (3.8 to 1 margin) in the first quarter of 2009. This is a contrast with the second quarter of 2008 when the number of downgrades equaled the number of upgrades with 10 each.

Moody's Public Finance Group affirmed 86 ratings in the second quarter 2009 in the not-for-profit healthcare sector, representing a high 80% of total rating actions and affecting approximately $41 million of debt, on par with 86 rating affirmations—81% of total rating actions—in the second quarter 2008, reports the rating agency.