The more substantial shift for the nonprofit hospital sector—and “The biggest question long term for rating agencies” like Fitch—is whether the nonprofit hospital sector sees operating margins “reset” from the ideal of 3% or higher to a range of 1% to 2%, analysts wrote in a new report.
- Should those lower numbers become the new normal for more than a transitional year or two, “the sector as a whole will start to experience some slight rating deterioration over time,” though more on a “credit by credit analysis” basis than en masse, the analysts wrote.
https://www.fiercehealthcare.com/providers/will-there-be-new-baselines-nonprofit-hospitals-financial-metrics-fitch-weighs