Source: Morgan Frey, S&P Global, March 27, 2020
More than half of healthcare workers are confident that consumer demand for their products and services will not decline as a result of the coronavirus pandemic, although some warned their businesses were facing serious challenges, according to a survey. The Voice of the Enterprise survey was conducted by 451 Research LLC, an offering of S&P Global Market Intelligence, between March 10 and March 19 and represents 820 responses. Of the healthcare employees surveyed, 54.8% said they did not expect a loss or reduction of customer demand, which was higher than any other industry in the survey. S&P Global Ratings expects the coronavirus’ impact on the healthcare sector will be “moderate” versus other industries.
S&P: For-profit hospitals may weather procedure cancellations amid COVID-19
Source: Ricky Zipp, S&P Global, March 26, 2020
Most for-profit hospitals should have enough liquidity to overcome the next three to six months of volume declines as the coronavirus pandemic continues to stress health systems and take a toll on the U.S. economy, according to S&P Global Ratings analysts.
Not-For-Profit Acute Care Sector Outlook Revised To Negative Reflecting Possible Prolonged COVID-19 Impact
Source: S&P Global Ratings, March 25, 2020
- We have revised our not-for-profit acute health care sector outlook to negative due to the quickly evolving COVID-19 pandemic and the subsequent investment market deterioration which could pressure credit quality.
- We believe certain credits, especially those with healthy unrestricted reserves and liquidity, may be better able to manage through this crisis.
- Duration, location, and severity will be important considerations in determining the broader impact of this pandemic on the sector.