Ten hospitals and health systems received a credit downgrade between March 15 and April 14, according to a report by HFA Partners.
The hospitals and health systems receiving credit downgrades included:
• East Jefferson General Hospital (Metairie, La.) — from Baa3 to Ba1 (Moody's)
• East Liverpool (Ohio) City Hospital — from Ba1 to Ba3 (Moody's)
• Exeter (N.H.) Hospital — from A3 to Baa2 (Moody's)
• Genesis HealthCare System (Zanesville, Ohio) — from Ba1 to Ba2 (Moody's)
• Great Plains Regional Medical Center (Elk City, Okla.) — from BB+ to BB (S&P)
• Halifax Health (Daytona Beach, Fla.) — from BBB+ to BBB (Fitch) and from A- to BBB+ (S&P)
• Oconee Regional Medical Center (Milledgeville, Ga.) — from B to CCC (S&P)
• Regional West Medical Center (Scottsbluff, Neb.) — from Baa1 to Baa2 (Moody's)
• Roger Williams Medical Center (Providence, R.I.) — from BB- to B+ (S&P)
• San Antonio Community Hospital (Upland, Calif.) — from Baa1 to Baa2 (Moody's)
Moody's downgraded East Jefferson due to the hospital's deteriorating financial profile, as well as a long, drawn-out process to find a partner. Nashville, Tenn.-based Hospital Corporation of America withdrew its lease proposal in February, and Moody's analysts said the hospital's attempts to find a strategic partner have been "prolonged by the political decision-making process, which has contributed to volume declines as well as created a distraction for management."
Halifax Health, meanwhile, continues to be embroiled in a large lawsuit involving allegations the system violated the False Claims Act and Stark Law. In March, Halifax agreed to pay $85 million to settle its first trial, and a second trial looms this summer.
Exeter, Gensis HealthCare and SACH, among others, received downgrades due to negative operating margins and overall poor financial metrics in fiscal year 2013.
Eight acute-care hospitals and health systems garnered a credit upgrade in the past month:
• Community Medical Centers (Fresno, Calif.) — from Baa2 to Baa1 (Moody's)
• Delnor Hospital (Geneva, Ill.) — from A+ to AA- (S&P)
• John C. Lincoln Health Network (Phoenix) — from BBB+ to A- (S&P)
• Northeast Health System (Beverly, Mass.) — from Baa2 to Baa1 (Moody's)
• Sherman Health (Elgin, Ill.) — from Baa2 to Baa1 (Moody's)
• St. Peter's Hospital (Albany, N.Y.) — from A to A+ (S&P)
• Stanly Health Services (Albemarle, N.C.) — from BBB+ to A+ (S&P)
• UC Health (Cincinnati) — from Baa1 to A3 (Moody's) and from BBB+ to A- (S&P)
Delnor, John C. Lincoln, NHS, Sherman and Stanly received upgrades, in part, because the credit rating agencies believed they were benefitting from recent mergers or affiliations.
Seven hospitals and health systems also had improved outlook changes, while 14 hospitals and health systems had lowered outlook changes.
Related Articles on Hospital Credit Ratings:
Moody's Confidence in Steward Slips
10 Hospitals and Health Systems With Strong Finances
Fitch: ICD-10 Delay Will Benefit Nonprofit Hospitals