The following hospital and healthcare systems have experienced affirmed credit ratings in recent weeks as their operating performance continues to hold up relatively well in a sustained difficult market:
Baptist Health Care (Pensacola, Fla.): While its "thinner financial profile" may raise concern, the system had its rating affirmed at "BBB" because of expected benefits from a new hospital project, Fitch Ratings said Dec. 19. Total operating revenue for the group in 2022 is estimated at $792 million with an operating loss of $23.5 million.
Brooks Rehabilitation (Jacksonville, Fla.): Affirmed at "A-" amid strong operating performance and with a leading market presence in a fast-growing region, Fitch Ratings said Jan. 6. Brooks Rehabilitation is expecting to open five more locations in the Orlando area in 2023, Fitch said.
Honor Health (Scottsdale, Ariz.): With a strong market presence and relatively robust operating performance, HonorHealth had its credit ratings affirmed at "A+" Dec. 15, Fitch Ratings said. HonorHealth's footprint includes six acute care hospitals with a total of 1,430 licensed beds, one rehab joint-venture hospital, one surgical hospital, 26 primary care clinics, 40 specialty clinics, 33 urgent care clinics, five surgery centers and more than 300 employed providers.
Johns Hopkins Health (Baltimore): The system had its credit rating affirmed at "AA-" with a strong market presence and solid operating performance in Maryland and Washington, D.C., Fitch Ratings said Dec. 19. The consolidated system reported $8.2 billion in revenue in fiscal 2022.
MedStar Health (Columbia, Md.): Margins will eventually rebuild to historic levels and a strong management team will help ensure so, Moody's said of MedStar Health as the rating agency affirmed an "A2" credit rating with a stable outlook Jan. 5. MedStar, which operates 10 hospitals in Washington, D.C., and Maryland, reported a $200 million loss in fiscal 2022, buffeted by a "volatile" investment market.
Mount Sinai Hospital (New York City): Affirmed an "A" rating because of its dominant position and relatively strong operating performance, Fitch Ratings said Nov. 16. The ratings, which refer to both $479.1 million of bonds and on the hospital's Issuer Default Rating, applies to the two hospital locations on the Upper East Side of Manhattan and in Astoria, Queens.
Prime Healthcare (Ontario, Calif.): The system's credit rating was affirmed at "B-" amid expectations its operating outlook will improve in 2023, S&P Global said. The rating comes after Prime was hit with a credit downgrade by Moody's in November because of operating pressures and elevated debt concerns. Prime Healthcare and a nonprofit arm, Prime Healthcare Foundation, comprise 45 hospitals and more than 300 outpatient locations in 14 states.
Salem (Ore.) Health: A "very strong" financial profile and a leading market share position combined for Salem to have its rating affirmed at "AA-," Fitch Ratings said Jan. 11. In fiscal 2022, Salem Health reported revenues of over $1 billion and reported an almost break-even performance for the year, with losses from operations totaling only $3.1 million.
ThedaCare (Neenah, Wis.): A focused strategy, strong financial profile and robust market share affirmed Theda's "AA-" rating, Fitch Ratings said Dec. 14. ThedaCare enjoys a 56 percent market share in its target area compared with two other multistate systems, namely St. Louis-based Ascension and Downers Grove, Ill.- and Milwaukee-based Advocate Aurora Health with about 30 percent and 11 percent shares, respectively, Fitch noted.
Trinity Health (Livonia, Mich.): The system's large size — it is one of the largest nonprofit hospital systems in the country — and its market presence in a number of key states allow it to withstand the typical headwinds of labor costs and inflationary pressures, Fitch Ratings said Dec. 1 when affirming an "AA-" rating. The outlook for the healthcare group, which holds about $6.9 billion of debt, remains stable.
USC Arcadia (Calif.): The group's recent strategic affiliation with the USC Keck School of Medicine and an expectation it will improve its operating profitability allowed for an affirmation of its "BBB+" rating, Fitch Ratings said Jan. 13. The hospital is a 348-licensed-bed community hospital, and the consolidated group had total revenues of $319 million for the 12-month unaudited period ended June 30, 2022.
Valleywise Health (Phoenix): The system had its "AA-" rating affirmed on various bonds, several notches above its general rating of "BBB," because of the support of a strong tax revenue base in fast-growing Maricopa County, Fitch Ratings said Jan. 13. Valleywise, whose operations include an acute care hospital, two behavioral health centers and 11 federally qualified health centers, generated total revenues of $807.4 million in fiscal 2022, according to Fitch.