Achieving full compliance with rules to make California healthcare facilities more earthquake resilient could strain S&P ratings for many hospitals and health systems, according to an article on the Becker's Hospital Review website.
California law requires hospitals to upgrade buildings to reduce their risk of collapse during earthquakes by 2020 and to remain operational after an earthquake occurs by 2030. The 2030 rules include structural and nonstructural components, the article said.
In a recent report, S&P Global Ratings said most organizations have met the 2020 seismic compliance deadline, but many will face challenges to meet full seismic compliance by 2030.
According to the report, full compliance by 2030 could be difficult for providers with lower ratings that already have challenges related to accessing capital at a reasonable cost.
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