Healthcare In Crisis: For-profit US hospital industry continues to face challenges in 2008 - Fitch

Thursday, March 13, 2008

For-profit US hospital industry continues to face challenges in 2008 - Fitch

Fitch Ratings said the for-profit US hospital industry will continue to face several challenges in 2008 after seeing a continuation of high levels of bad debt expense, weak volumes and strong pricing in the fourth quarter of 2007.

Increasing operating expenses, particularly bad debt and labour-related expense, will continue to pressure the sector, Fitch said. Hospital operators will also face continued weak volume growth and growing competition, due to which, pricing will remain a key driver of revenue and EBITDA growth.

However, the rating agency said healthcare providers may face some reimbursement headwinds in 2008 and beyond.

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Statistics Collection

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