Moody?s downgrades $20B in health care debt

Moody?s Investors Service downgraded $20 billion in U.S. not-for-profit health care debt in 2012.?

Moody?s Investors Service downgraded a record $20 billion in U.S. not-for-profit health care debt in 2012.

Three large health systems accounted for the majority of the downgraded debt. Downward revisions for Catholic Health Initiatives in Colorado, Dignity Health in California and Memorial Sloan-Kettering Cancer Center in New York were responsible for nearly $13 billion.

Catholic Health Initiatives is the parent organization of Cincinnati?s Good Samaritan Hospital.

The total was an increase of 213 percent from the $6.4 billion downgraded in 2011. The $20 billion was more than double the year?s $9.7 billion of upgraded debt.

The downgrades ?were driven by volume declines and weaker or negative revenue growth contributing to weakening operating performance and debt service coverage,? Carrie Sheffield, a Moody?s associate analyst, said in a news release.

?The industry remains under pressure from policymakers and the public to reduce costs,? Sheffield said. ?Medicare funding, the largest single revenue source for most not-for-profit hospitals, is a main target of federal deficit reduction plans.?

Ritchie covers Procter & Gamble Co., health care and technology

Source: http://feedproxy.google.com/~r/vertical_37/~3/Ko5s7LvZF_A/moodys-downgrades-20b-in-health-care.html

morgan freeman westboro baptist church Survivor Philippines Fashion Island shooting Victor Cruz nfl standings Vicki Soto