Bangkok--1 Feb--Standard & Poor's
Credit quality in the U.S. not-for-profit health care sector should remain stable this year, Standard & Poor's Ratings Services said in a report.
"However, the outlook beyond 2012 could change because of weaker revenues and declining inpatient utilization, a long-term decline in employer-based health insurance, and the accelerated adoption of potentially expensive physician alignment strategies," said Standard & Poor's credit analyst Martin Arrick. "In addition, there are significant uncertainties about the implementation of health care reform that may not be clarified for a few years."
Since 2009, the sector has improved its performance through cost containment and significant efforts to boost economies of scale, product and process standardization, and quality of care, according to the report, "Outlook Is Stable For Not-For-Profit Health Care Providers This Year, But Unsettling Times Loom".
In our opinion, providers will continue to manage short-term problems effectively this year, as they did in 2010, while also preparing for health care reform. While managing costs is an effective short- to medium-term strategy, we believe its effectiveness is limited in the long term unless the broader business model also changes.
The report is available to RatingsDirect subscribers on the Global Credit Portal at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to
[email protected]. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Martin D Arrick, New York (1) 212-438-7963
Liz Sweeney, New York (1) 212-438-2102