Fitch: Capital Spending to Rise for U.S. Non-Profit Hospitals

CHICAGO--(BUSINESS WIRE)-- Link to Fitch Ratings' Report: Cap Ex Rising (Technology, Consumerism and Outpatient Services to Drive Spending)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=870604

An increasing percentage of U.S. non-profit hospitals project capital spending to increase over the next five years, according to Fitch Ratings in a new report.

Fitch's 2015 capital expenditures survey shows that 53% of hospitals expect capital spending to increase over the next five years, compared to 45% in 2012. Conversely, the percentage of hospitals expecting to issue new bonds over the next two years decreased to 29% in 2015 from 39% in 2012. Survey results varied by both rating category and revenue base.

The highest capital priority identified in the survey remains information technology, though its importance has narrowed relative to other capital priorities. Inpatient capacity remained the lowest capital priority, consistent with Fitch's 2012 survey results.

According to Director Adam Kates, 'Increased certainty regarding the implementation of the PPACA following the Supreme Court's upholding of key provisions of the act, stable operating profitability during implementation of key PPACA provisions over the past three years and increasing patient consumerism are contributing to the increased projected capital spending.'

'Cap Ex Rising' is available at 'www.fitchratings.com' or by clicking on the above link.

Additional information is available at 'www.fitchratings.com'.

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View source version on businesswire.com: http://www.businesswire.com/news/home/20150924006252/en/

Fitch Ratings
Adam Kates
Director
+1-312-368-3180
Fitch Ratings, Inc., 70 West Madison Street, Chicago, Illinois, 6060
or
Jim LeBuhn
Senior Director
+1-312-368-2059
or
Media Relations:
Sandro Scenga, +1-212-908-0278
[email protected]

Source: Fitch Ratings

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