Bangkok--3 Jun--Standard & Poor's
Arizona health care providers most likely to be impacted by health care cuts in the state are planning well, a new Standard & Poor's report says. The report, "Management Response To Reimbursement Reductions Is Key For Arizona Not-For-Profit Health Care Providers' Credit Quality" examines data gathered by Standard & Poor's to see how the health care providers are managing current cuts and planning for those that may be forthcoming. The extent of those cuts is not currently certain.
"We believe many organizations are prepared with sufficient cost reductions and that the credit rating impact on them may be minimal," said Standard & Poor's credit analyst Geraldine Poon. "Nonetheless, managements' proactive expense controls and nimbleness will be key in mitigating any negative impact on credit ratings," added Ms. Poon.
Recent state budget stress has prompted Arizona lawmakers and Governor Jan Brewer to cut payment rates by 5% from AHCCCS as of April 1, 2011. Lawmakers have also proposed an additional 5% rate reduction for Oct. 1, 2011, a rollback of Proposition 204, and other measures.
The report is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.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:
Edward Sweeney, New York (1) 212-438-6634,
[email protected]
Analyst Contacts:
Geraldine Poon, San Francisco (1) 415-371-5078
Kenneth T Gacka, San Francisco (1) 415-371-5036