Although the COVID-19 coronavirus is likely to induce funds flow and liquidity concerns for hospitals by the stop of the 12 months and into 2021, the credit rating outlook for the healthcare market isn’t really as dire as some had feared. Although there have been some downgrades this 12 months, most of these are attributable to healthcare money performance at the stop of 2019.
At a virtual session of the Healthcare Fiscal Management Affiliation on Wednesday, Lisa Goldstein, associate controlling director at Moody’s Investors Company, reported the agency is taking a measured technique to issuing credit rating rankings and will “triage” these rankings centered on components these types of as liquidity and funds flow.
“Modifications are occurring everyday, and in some cases hourly with funding coming from the federal governing administration,” reported Goldstein, “so we are taking a pretty measured technique.”
Healthcare is among the the most volatile industries being