NEW YORK--(BUSINESS WIRE)--Median financial ratios for the nonprofit hospitals and healthcare systems sector exhibited continued solid performance in fiscal 2011, according to a new report by Fitch Ratings. Profitability and liquidity median metrics remained stable from the prior year for investment-grade credits, and median coverage of maximum annual debt service improved to 3.8x from 3.5x and is at the second highest level over the past six years.
"Although investment-grade credits continued to perform well, there are many challenges over the medium term that will pressure financial performance, especially given uncertainties surrounding future reimbursement levels," said Michael Burger, Director. "Providers with size and scale are best positioned in the changing landscape as they have the ability to generate increased operating efficiencies and better resource allocation."
Financial performance for credits below the 'BBB' category indicates further stress in fiscal 2011 as unrestricted cash and investments, income from operations, and debt service coverage indicators all fell from prior year levels. Fitch expects the credit gap to continue to widen, as the stronger credits have a better ability to invest while the weaker credits remain challenged on many fronts.
Fitch will host a conference call to discuss the report on August 23rd at 2:00 PM eastern.
Dial-in details are:
--U.S. Participant Dial-In Number: (877) 467-8597
--International Dial-In Number: (706) 643-6296
--Conference and Replay ID: 20579360
Replay will be available for 30 days:
--Replay Dial-In Number for U.S. participants: (855) 859-2056
--Replay Dial-In Number for international participants: (404) 537-3406
For more information, a special report titled '2012 Median Ratios for Nonprofit Hospitals and Healthcare Systems' is available on the Fitch Ratings web site at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: 2012 Median Ratios for Nonprofit Hospitals and Healthcare Systems