Ten hospitals and health systems received a credit downgrade between April 15 and May 14, according to a report by HFA Partners.
The hospitals and health systems receiving credit downgrades included:
• Centegra Health System (Crystal Lake, Ill.) — from BBB+ to BBB (S&P) and from A- to BBB (Fitch)
• Citrus Memorial Hospital (Inverness, Fla.) — from B- to C (Fitch)
• Crozer-Keystone Health System (Upland, Pa.) — from Baa3 to Ba2 (Moody's)
• Daughters of Charity Health System (Los Altos Hills, Calif.) — from BBB- to B- (S&P)
• Good Samaritan Hospital (Vincennes, Ind.) — from A3 to Baa1 (Moody's)
• Heritage Valley Health System (Beaver, Pa.) — from AA- to A+ (S&P)
• Hopkins County Memorial Hospital (Sulphur Springs, Texas) — from Ba3 to B1 (Moody's)
• Lucile Packard Children's Hospital (Palo Alto, Calif.) — from AA to AA- (S&P)
• SSM Health Care (St. Louis) — from AA- to A+ (S&P)
• Tuomey Healthcare System (Sumter, S.C.) — from CCC to CC (S&P)
S&P slammed DCHS' credit rating six notches in April as the Catholic-based network continues to struggle mightily with its finances and pursues a buyer. Crozer-Keystone, meanwhile, recently posted $31.6 million in operating losses in the first nine months of its 2014 fiscal year. The five-hospital system's admissions, births, surgeries and observations visits have all been lowered than expected.
SSM Health Care's downgrade came as the health system released 2013 financials. At the end of April, the system posted a $74.3 million loss from operations in FY 2013; however, much of that stemmed from one-time, nonrecurring charges. Tuomey also faces potential bankruptcy as its Stark Law and False Claims Act lawsuit has drained the system's credit profile.
Four acute-care hospitals and health systems garnered a credit upgrade in the past month:
• Baptist Health Care (Pensacola, Fla.) — from Baa1 to A3 (Moody's)
• Central Washington Hospital (Wenatchee) — from BBB- to BBB (Fitch)
• Mercy Regional Health Center (Manhattan, Kan.) — from A to A+ (S&P)
• Scripps Health (San Diego) — from AA- to AA (S&P)
Nine hospitals and health systems also had improved outlook changes, while nine hospitals and health systems had lowered outlook changes.
Related Articles on Hospital Credit Ratings:
21 Hospitals and Health Systems With Strong Finances
EHR Install Factor in Centegra's Weakened Credit Rating
Legal Problems May Push Tuomey Into Bankruptcy