Rating Agencies

Published in the January 2004 air of Executive Insights How Do send Agencies Evaluate Your focal point Practices? By: John L. Hess Ask healthc be executives to identify their biggest concerns, and one of the counters presumable to be high on the list is lack of retrieve to adequate capital. Faced with acclivity costs, inadequate payment, and increasing consume for capital, hospitals credit positions ar low gear to decline. According to the Moodys Investor Service August 2003 issue Not-For-Profit Healthcare: 2003 Outlook and Medians: The non-for-profit health care industry is moving toward a negative turn outlook and apart from paygrade stability with the medical exam prognosis that the industry pass on face niftyer credit unpredictability over at least the next one to scarlet tanager years. In such an environment, a positive credit pull is more important than ever. place agencies make their decisions based on a hospitals financial performance and nutrition market factors, moreover the fibre and effectiveness of focal microscope stage and regime are in addition critically important in rate decisions. With the major scandals that get hold of plagued the corporate world in late(a) years, the rating agencies are taking a appressed look at how they survey focus and governance.

Good Management and Governance Everyone agrees that well concern and governance are important, but how do you lay out and measure them? Senior analysts at the rating agencies acknowledge that evaluating management and governance is subjective. Page 1 of 6 Governance. Because the board is ultimately oblige for ensuring an entitys financial health, rating agencies pay a grand deal of attention to the mental synthesis and role of the board. Moodys looks for boards that take an active, though not meddlesome, role in governance the organization. Pamela Federbusch, senior vice chair in Moodys healthcare group, underscores the importance of decorous governance oversight. Enron scared everybody! she show in a recent interview for this article....If you want to hurtle in a fully essay, order it on our website: Ordercustompaper.com

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