Distressed hospitals are reporting they don’t have enough cash to satisfy lenders, which typically require borrowers to meet periodic profit and other financial targets. Lenders are demanding that hospitals hire consultants to help turn around their operations or set aside cash for repayment. Failures to meet such obligations to lenders can technically count as default, putting hospitals at risk of credit downgrades and higher interest rates.
Read the full article: Some Hospitals That Spent Big on Nurses during Pandemic Are Now Short on Cash //
Source: https://www.wsj.com/articles/some-hospitals-that-spent-big-on-nurses-during-pandemic-are-now-short-on-cash-d20f0435