ARMONK, N.Y.--(BUSINESS WIRE)--National Public Finance Guarantee Corp. (“National”) today released a study on the operating environments of our nation’s not-for-profit, acute care hospitals in light of current and impending changes due to health care reform. The study concludes that, despite its current state of relative stability, not-for-profit hospitals will experience more volatile revenues leading to an acceleration of consolidations as weak or poorly positioned hospitals struggle to stay relevant in the face of sweeping change.
“As providers brace for the full impact of health care reform in 2014, many hospitals are taking proactive measures to rein in expenses and improve quality while testing new delivery system methodologies,” said Karleen Strayer, Managing Director at National Public Finance Guarantee. “These are the providers who will benefit from reform. On the other hand, less successful providers with operational and budget deficiencies may be forced to align with stronger participants in order to survive.”
The study provides an in-depth look at the dramatic changes sweeping the sector and the opportunities these changes present. In addition, a review of the effects of the recession on the health care sector is followed by a discussion of the Affordable Care Act and its implementation. The study also discusses the factors National deems important in analyzing health care credits. A summary of key credit metrics for issuers represented in National’s top 20 exposures is included.
National’s measured approach to underwriting allows the company to identify the underlying strengths and weaknesses of these credits and to selectively insure those that satisfy its strict analytical guidelines. Over the past three decades, National and its predecessors have provided insurance policies totaling $93 billion to the health care sector, giving the company unique insight into the sector’s strengths and challenges.
The new study can be found on National’s website at www.nationalpfg.com, along with other sector studies covering Puerto Rico, Toll Roads, Public Power, Airports, Military Housing, California Redevelopment & Tax Allocation Bonds and Higher Education, among others.
National, headquartered in Armonk, New York, is the world’s largest U.S. public finance-only financial guarantee insurance company, with offices in New York and San Francisco. The company’s financial strength is highlighted by its $5.6 billion in claims-paying resources, $2.5 billion in statutory capital and strong embedded profitability from its $475 billion insured portfolio and $5.4 billion investment portfolio as of March 31, 2011.
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