Becker's Healthcare December 11, 2024
Elevated inflation, Medicaid expansion, the reinstatement of Medicare sequestration and significant waves of M&A all have intensified a long-term trend of credit divergence, splitting hospitals into stronger and weaker segments, Fitch Ratings said in a Dec. 9 report.
This “credit split” is evolving into a “trifurcation” of credit quality, which the ratings agency expects to dominate in 2025. A credit “bifurcation” is projected to emerge soon after.
Success increasingly depends on recruiting and retaining talent in a hypercompetitive labor market, improving productivity and investing in key areas like artificial intelligence and IT infrastructure. Hospitals excelling in these areas — often with strong market share in growth markets — are likely to reach the top of the rating scale.
...Today's Sponsors
Today's Sponsor