Fitch: U.S. Not-for-Profit Health Care Industry Stable in 2005.

NEW YORK -- A combination of sound management and business strategies, continued low capital costs and steady near-term Medicare funding will keep the U.S. not-for-profit health care sector stable in 2005, according to Fitch Ratings. However, Fitch strongly believes that beginning in 2006, the

Fitch continues to be impressed by the growing sophistication of industry management practices to improve financial flexibility, maintain costs, and stem competition. While Fitch believes that the biggest improvements in revenue gains have already been achieved, additional noticeable gains are still attainable. A hospital's ability to invest in technology to achieve benchmark quality outcomes, provide the most advanced care, and create system efficiencies will be differentiating factors for hospital performance in 2005.

Fitch will hold a teleconference to discuss Fitch's 2005 hospital & health care system outlook on Thursday, Jan. 20 at 2:00 p.m. Domestic participants should call 888-266-4139 and international participants should call 706-643-1860 five minutes prior to the 2:00 p.m. EST start time. Powerpoint slides for the teleconference will also be available on the day of the call at www.fitchratings.com under the heading 'Resource Library,' 'Teleconference and Online Events.'