Feb 12 (Reuters) - Moody’s Investors Service said on Tuesday 2012 downgrades of debt for U.S. not-for-profit healthcare set a new record at $20 billion, an increase of 213 percent over the year before.
Of the $20 billion of debt downgraded, three large health systems, Colorado’s Catholic Health Initiatives, California’s Dignity Health and New York’s Memorial Sloan-Kettering Cancer contributed almost $13 billion to that amount, the rating agency said in a statement.
“The industry remains under pressure from policymakers and the public to reduce costs,” said Moody’s Associate Analyst Carrie Sheffield.
“Medicare funding, the largest single revenue source for most not-for-profit hospitals, is a main target of federal deficit reduction plans,” she added.
Rating activity for the not-for-profit healthcare sector in 2012 marked the seventh consecutive year in which downgrades (40) outpaced upgrades (38) for a ratio of 1.05 to 1, Moody’s said.