HealthLeaders Media March 19, 2020
The ratings agency changed the nonprofit sector’s outlook from stable to negative based on cash flow constraints.
Moody’s Investors Service changed the nonprofit and public healthcare sector’s outlook from stable to negative Wednesday as a result of the continued spread of coronavirus disease 2019 (COVID-19).
Moody’s expects the sector to see lower cash flow in 2020 compared to 2019 and revenue declines associated with the cancellation of elective surgeries.
The ratings agency expects “some containment” of the virus during the second half of 2020 but cited concerns with nonprofit healthcare companies facing rising expenses and widespread uncertainty.
“Ripple and lingering effects to the economy will also drive lower cash flow even after the outbreak is contained,” the report stated....
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