More Credit Woes for Nonprofit Hospitals

Another day, another story about how the credit crisis is affecting nonprofit hospitals. This time, the WSJ (subscription required) focuses on Loyola University Health System in Chicago, which was “recently put on notice by a leading bond ratings firm that it faces a downgrade of its already below-average Baa1 credit ranking.” Loyola “is being squeezed by unpaid Medicaid bills, significant operating losses, and the cost of financial derivatives that are draining it of much needed cash.”

JDC