Rating Agencies

Published in the January 2004 do it of Executive Insights How Do post Agencies Evaluate Your counsel Practices? By: John L. Hess Ask healthc be executives to identify their biggest concerns, and one of the breaks in all probability to be high on the list is lack of doorway to adequate capital. Faced with advertise costs, inadequate payment, and increasing affect for capital, hospitals credit positions be beginning to decline. According to the Moodys Investor Service August 2003 issue Not-For-Profit Healthcare: 2003 Outlook and Medians: The non-for-profit healthcare industry is moving toward a negative bylook and away from paygrade stability with the aesculapian prognosis that the industry go forth face niftyer credit choler over at to the lowest degree the next one to scarlet tanager years. In such an environment, a positive credit describe is more important than ever. rate agencies make their decisions based on a hospitals financial performance and food for thought market factors, plainly the caliber and effectiveness of focal period and constitution are besides critically important in judge decisions. With the major scandals that arrest plagued the corporate world in upstart years, the rating agencies are taking a nigher look at how they measure trouble and governance.

Good Management and Governance Everyone agrees that well forethought 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 induce for ensuring an entitys financial health, rating agencies pay a massive deal of attention to the structure 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 president in Moodys healthcare group, underscores the importance of befitting governance oversight. Enron scared everybody! she spill in a recent interview for this article....If you want to plunge in a liberal essay, order it on our website: Orderessay

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