U.S. hospital bond ratings in the managed care era.
This study examines whether managed care organizations (MCOs) have made it more difficult for U.S. hospitals to finance capital improvements. Specifically, the study analyzes the link between MCO penetration and the ratings assigned to newly issued tax-exempt hospital bonds. Because of greater financial pressures, rating agencies may assign lower ratings to those hospitals most dependent on managed care revenues. Lower ratings in turn will require hospitals to offer higher yields to investors, thereby increasing the cost of capital improvements.
Loubeau
Patricia R
PR
Department of Health Care Programs, Iona College, New Rochelle, NY, USA.
Jantzen
Robert
R
D004469:Economics, Hospital; D007449:Investments / Q000145:classification*; D008329:Managed Care Programs; D014481:United States