Fitch Ratings August 2, 2021
Fitch Ratings-Chicago/New York-02 August 2021: The sharp rise in telehealth services during the coronavirus pandemic benefitted healthcare information technology (HCIT) companies, but a reduction in demand post-pandemic will not have negative credit implications, says Fitch Ratings. HCIT companies face risk from an evolving healthcare marketplace. These risks include efforts to transition to value-based care, provider consolidation and regulatory changes. However, secular trends continue to drive demand for HCIT services, supporting revenue, operating earnings and cash flow growth longer term.
The pandemic exerted direct and acute effects on the healthcare industry. Healthcare providers reserved capacity to address the surge in infections during the peak of the lockdown, leading to substantial declines in non-COVID-19 patient care. Telehealth services, which have been supported...
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