Fitch Special Report: Modern Facility Design & Its Impact on Operational & Capital Strategies.

NEW YORK -- Today, Fitch Ratings has issued a report focusing on the impact of modern facility design in the nonprofit health care industry. In its report titled 'Modern Facility Design and Its Impact on Operational and Capital Strategies', Fitch states a disciplined operational plan, combined with

Insufficient capital spending by most hospitals has been one of Fitch's primary concerns over the past several years. According to Fitch, nonprofit health care institutions must continue to invest in their core operations to ensure the highest value return on their capital investments. Greater scrutiny by state and federal regulators, increasing consumerism, and pay-for-performance programs have all resulted in increased emphasis on improving quality outcomes and patient safety. Additionally, aging hospital facilities have led to a modern building boom that some estimate will top $200 billion in the coming 10 years.

Fitch says that hospitals that incur additional debt to fund projects geared at improving health care delivery and quality may be able to execute this strategy without harming their credit ratings. In balance with the overall financial health of an organization, Fitch will weigh the favorable aspects of capital improvement projects and care delivery strategies against any increase in debt. While the effect may not be immediate, a hospital's ability to both determine the trend of quality and patient safety and influence outcomes through evidence-based design and health care information technology (HIT) that fosters better decision-making, will have a direct impact on efficiency, labor recruitment and retention, and reimbursement, which ultimately influence financial outcomes.

To access 'Modern Facility Design and Its Impact on Operational and Capital Strategies', please visit the Fitch Ratings web site at www.fitchratings.com.

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