Hospitals with Advanced IT Have More Admissions, Better Profits

Not-for-profit hospitals that have advanced IT systems--and/or have received quality awards--tend to be more profitable than other hospitals, according to a new report from Fitch Ratings.

In its review, Fitch looked at 291 hospitals that were part of the company's rated portfolio in 2009. Of the total portfolio hospitals, 24 (8 percent) were categorized as HIMSS stage 6 or stage 7 hospitals for their high rates of adoption of electronic health records (EHRs) and other advanced IT systems. In addition, 75 of the hospitals received some form of recognition for high quality of care.

Just over 80 percent of hospitals with a quality award or advanced IT recognition received at least an "A-" credit rating--compared with 67 percent of overall hospitals studied.