Healthcare Business News

Moody's to review NYU Langone credit rating

By Melanie Evans
Posted: November 21, 2012 - 10:45 am ET

Moody's Investors Service said analysts would review and may downgrade the A3 credit rating for NYU Langone Medical Center's hospitals “following the damage and interruption” from superstorm Sandy.

The extended closure of NYU Langone Medical Center's Tisch Hospital, which evacuated during superstorm Sandy after losing power, could cost the hospital market share, analysts said in a new report. That possibility would be a key focus of the rating agency's credit review, the report said. Analysts will also consider the drop in hospital revenue and liquidity, as well as the speed of ongoing capital projects, the report said.

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Tisch Hospital had not yet regained utility power, but above ground, the hospital “sustained little damage,” Moody's said in the Nov. 20 report, and plans call for inpatient services to reopen next month. Meanwhile, recovery efforts have reopened buildings that account for 60% of the hospital's revenue, Moody's said.

The hospitals expect to receive insurance, donations and aid from the Federal Emergency Management Agency to help pay for recovery efforts, Moody's said.

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