Here are 10 health systems that recently had their outlooks upgraded by Fitch Ratings or Moody's Investors Service.
Note: This is not an exhaustive list. Health systems were compiled from credit rating reports.
1. Moody's upgraded Aspen (Colo.) Valley Hospital's outlook to stable from negative. The revision reflects the hospital's ability to avoid projected volume losses and significant margin decline under a new partnership model, Moody's said.
2. Moody's upgraded Coral Gables-based Baptist Health South Florida's outlook to positive from stable. The ratings agency attributed the revision to substantial growth and performance improvement strategies, which it anticipates will be sustainable.
3. Moody's upgraded Baton Rouge, La.-based Franciscan Missionaries of Our Lady Health System's rating to positive from stable. The upgrade reflects expectations that the system will sustain its current financial performance, Moody's said.
4. Fitch upgraded Tacoma, Wash.-based MultiCare Health System's outlook to stable from negative. Fitch said MultiCare has made significant improvement in operating margins over the last two years and it expects that margins will continue to show steady improvement.
5. Moody's upgraded Orlando (Fla.) Health's outlook to positive from stable. The revision reflects the system's consistently strong operating cash flow margins that will likely result in relatively steady balance sheet leverage, Moody's said.
6. Fitch upgraded Dayton, Ohio-based Premier Health's outlook to stable from negative. The upgrade reflects the expectation the system will be able sustain its operational performance over the near to intermediate term, Fitch said.
7. Moody's upgraded Greenville, SC-based Prisma Health's outlook to positive from stable. The revision reflects Moody's expectation that the health system will sustain its current financial performance.
8. Moody's upgraded Sacramento, Calif.-based Sutter Health's outlook to positive from stable. The revision reflects Moody's expectation that operating cashflow margins will improve to the 7%-8% range, days cash on hand will remain between 200-220, and cash to debt will stay on a trajectory to reach nearly 200%.
9. Moody's upgraded West Des Moines, Iowa-based UnityPoint Health's outlook to stable from negative. The revision reflects UnityPoint's more solid financial performance, which will continue to strengthen, enabling it to sustain its days cash on hand position amid a planned increase in capital spend, Moody's said.
10. Fitch upgraded Paramus, N.J.-based Valley Health System's outlook to positive from stable. The revision reflects the system's successful transition to its new hospital and very early volume and financial results that are exceeding budget, with the operating performance remaining consistent with the strong operating risk assessment, Fitch said.