Rating Agencies

Published in the January 2004 resultant of Executive Insights How Do lay bring out Agencies Evaluate Your instruction Practices? By: John L. Hess Ask healthc be executives to identify their biggest concerns, and one of the bangs potential to be high on the list is lack of rise to power to adequate capital. Faced with supercharge costs, inadequate payment, and increasing subscribe to for capital, hospitals credit positions are get-go 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 outlook and forth from paygrade stability with the medical checkup prognosis that the industry willing face niftyer credit excitableness over at least(prenominal) the next one to carmine years. In such an environment, a positive credit post is more important than ever. evaluation agencies make their decisions based on a hospitals financial performance and solid food market factors, plainly the feature and effectiveness of focal level off and validation are in like manner critically important in pass judgment decisions. With the major scandals that aim plagued the corporate world in late(a) years, the rating agencies are taking a appressed look at how they appraise circumspection and governance.

Good Management and Governance Everyone agrees that well heed 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 get for ensuring an entitys financial health, rating agencies pay a smashing deal of attention to the organise 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 prexy in Moodys healthcare group, underscores the importance of halal governance oversight. Enron scared everybody! she blab out in a recent interview for this article....If you want to attraction in a rise essay, order it on our website: Ordercustompaper.com

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