CHICAGO — Coming off a year that saw record-high capital spending by not-for-profit hospitals, the industry is likely to continue its spending spree this year even as it grapples with fallout from the bond insurance market, analysts said.

“The record-high level of capital expenditures is expected to continue until at least mid-November, assuming market problems are ironed out,” said Fitch Ratings analyst Jeff Schaub during a conference call yesterday that accompanied the agency’s release of a report on the 2008 outlook for nonprofit hospitals and health care systems. “Projects may be delayed but the factors that drove [spending] last year are still there.”

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.