Healthcare Organizations Face Increasing Credit Risk Amidst Economic Challenges and Regulatory Pressures

Ben H.

Hatched by Ben H.

Aug 04, 2023

3 min read


Healthcare Organizations Face Increasing Credit Risk Amidst Economic Challenges and Regulatory Pressures


The healthcare industry is currently facing numerous challenges that are putting organizations at risk of credit downgrades and defaults. Factors such as rising costs in an inflationary economic environment, legislative changes, and litigation have contributed to a material deterioration in the sector's credit quality. This article will explore the growing credit risk in healthcare organizations and highlight the efforts of companies like Kalderos to address these issues.

Economic Challenges and Credit Deterioration:

As healthcare organizations grapple with high costs, they find themselves more vulnerable to credit downgrades and defaults. Moody's, a renowned credit rating agency, has reported that twenty-five North American entities in the hospital, pharmaceutical, medical device, and healthcare services sectors have experienced credit downgrades to B3- or lower. This alarming trend indicates a significant deterioration in the sector's credit quality.

Regulatory Pressures and Litigation:

In addition to economic factors, healthcare organizations are also facing regulatory pressures and litigation that further compound their credit risk. The No Surprises Act, for instance, has introduced new regulations to protect patients from unexpected medical bills. While this legislation benefits patients, it places additional financial burdens on healthcare providers, potentially leading to credit defaults. Furthermore, opioids-related litigation has created additional financial strain on pharmaceutical companies, exposing them to credit downgrades.

The Emergence of Kalderos:

Amidst these challenges, Kalderos has emerged as an interesting company that aims to address credit risk in the healthcare industry. Originally born out of the 340B program, Kalderos has pivoted its focus to create the world's first Drug Discount Management platform. This innovative platform facilitates collaboration among drug discount stakeholders by providing better data, transparency, and trust.

Kalderos' Contribution to Credit Risk Mitigation:

In July, Kalderos introduced its first product prototype called Grappa. This tool enables covered entities to easily review claims, ensuring accuracy and preventing potential billing errors that could lead to credit defaults. By streamlining the claims review process and improving transparency, Kalderos is actively working towards reducing credit risk in healthcare organizations.

Actionable Advice:

  • 1. Embrace Data-Driven Decision Making: Healthcare organizations must prioritize the collection and analysis of data to gain insights into their financial health. By leveraging data analytics, organizations can identify areas of credit risk and take proactive measures to mitigate potential defaults.
  • 2. Stay Abreast of Regulatory Changes: It is crucial for healthcare organizations to stay informed about new legislation and regulations that may impact their financial stability. By understanding the implications of regulatory changes, organizations can adapt their strategies and minimize credit risk.
  • 3. Invest in Collaborative Solutions: Companies like Kalderos are paving the way for collaborative platforms that enhance transparency and trust among stakeholders. Healthcare organizations should explore such solutions to improve communication, streamline processes, and mitigate credit risk.


The healthcare industry is currently facing a significant credit risk due to various economic challenges, regulatory pressures, and litigation. However, companies like Kalderos are actively working towards addressing these issues through innovative solutions. By embracing data-driven decision making, staying informed about regulatory changes, and investing in collaborative platforms, healthcare organizations can mitigate credit risk and ensure their long-term financial stability. It is crucial for the industry as a whole to come together and proactively tackle these challenges to ensure the delivery of high-quality care while maintaining financial sustainability.

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