Fitch sees a shadow: One more tough year for nonprofits
Fitch Ratings, an international long-term credit rating agency, has disclosed that it will maintain its "negative outlook" for U.S. nonprofit hospitals and health systems during 2010.
There are a number of different factors contributing to the decision to maintain the "negative outlook," Fitch explained. Lingering effects from the recession, instability in the financial sector and impending federal cost-containment efforts will affect providers' revenue over the next year. Even the floundering healthcare reform debate will have some impact, as the underlying factors driving reform—large numbers of uninsured people, out of control healthcare spending—still need to be addressed, according to Fitch.
The official outlook report, “2010 Nonprofit Hospitals and Health Systems Outlook,” is scheduled for release on Tuesday, Feb 9. There will be a teleconference accompanying the release.