Rating Agencies

Published in the January 2004 issue of Executive Insights How Do rank Agencies Evaluate Your Management Practices? By: John L. Hess Ask healthc be executives to identify their biggest concerns, and one of the issues likely to be high on the list is lack of access to adequate capital. Faced with boost costs, inadequate payment, and increasing demand for capital, hospitals credit positions are kickoff to decline. According to the Moodys Investor Service August 2003 issue Not-For-Profit Healthcare: 2003 Outlook and Medians: The not-for-profit healthcare industry is moving toward a negative outlook and away from paygrade stability with the medical prognosis that the industry will face niftyer credit excitability over at least the next one to cardinal years.

In such an environment, a positive credit place is more important than ever. Rating agencies make their decisions based on a hospitals financial performance and food market factors, but the quality and effectiveness of focal point and governance are also critically important in rating decisions. With the major scandals that have plagued the corporate world in recent years, the rating agencies are taking a closer look at how they evaluate management and governance.





Good Management and Governance Everyone agrees that well management 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 obligated for ensuring an entitys financial health, rating agencies pay a great 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 proper governance oversight. Enron scared everybody! she verbalize in a recent interview for this article....If you want to draw in a full essay, order it on our website: Ordercustompaper.com



If you want to get a full essay, wisit our page: write my paper