A total of 34 healthcare companies are at risk of default going into 2023 amid excessive debt levels and weak operating performance, Moody's said in a Dec. 12 report shared with Becker's.
All the companies, which range from hospital and primary care groups to medical equipment companies, have been assigned a "B3 negative" or lower rating, with 25 of those happening this year. Healthcare now accounts for approximately 16 percent of the companies on Moody's B3 Negative and Lower List, compared to less than 4 percent at Dec. 31, 2015.
To help with assessing the risk of default, Moody's also looked at companies in the sector that have defaulted since January 2020. These include Franklin, Tenn.-based Community Health Systems, one of the largest publicly traded hospital groups in the country.
Here is a list of the 34 companies currently at risk of default with their probability of default and corporate family ratings, as well as their outlook and area of business, according to Moody's:
1. Air Methods Caa3-P.D Caa3 Stable Healthcare Services to Business
2. Akorn Operating Company Caa2-PD Caa2 Stable Specialty/Generic Pharmaceuticals
3. Akumin Caa2-PD Caa2 Stable Hospitals or other facilities-based providers
4. Alcami Corporation Caa1-PD Caa1 Stable Healthcare Services to Business
5. Athletico Holdings B3-PD B3 Negative Hospitals or other facilities-based providers
6. Avalign Holdings Caa1-PD Caa1 Stable Medical Devices
7. Aveanna Healthcare Caa1-PD Caa1 Negative Hospitals or other facilities-based providers
8. Bausch Health Companies Caa3-PD Caa2 Negative Specialty/Generic Pharmaceuticals
9. BVI Holdings Mayfair Limited Caa1-PD Caa1 Negative Medical Devices
10. BW NHHC Holdco Caa3-PD Caa3 Stable Hospitals or other facilities-based providers
11. Cano Health Caa1-PD Caa1 Stable Hospitals or other facilities-based providers
12. Covenant Physician Partners Caa1-PD Caa1 Stable Hospitals or other facilities-based providers
13. Envision Healthcare Corporation C-PD C Stable Hospitals or other facilities-based providers
14. Exactech Caa2-PD Caa2 Stable Medical Devices
15. Femur Buyer Caa2-PD Caa2 Stable Medical Devices
16. Gordian Medical Caa1-PD Caa1 Stable Hospitals or other facilities-based providers
17. Lannett Company Ca-PD Ca Stable Specialty/Generic Pharmaceuticals
18. LifeScan Global Corporation Caa2-PD Caa2 Stable Medical Devices
19. Medical Depot Holdings Caa2-PD Caa2 Stable Medical Devices
20. Midwest Veterinary Partners B3-PD B3 Negative Hospitals or other facilities-based providers
21. National Mentor Holdings Caa1-PD Caa1 Stable Healthcare Services to Consumers
22. NMN Holdings III B3-PD B3 Negative Medical Devices
23. One Call Corporation Caa1-PD Caa1 Stable Healthcare Services to Business
24. Pluto Acquisition I B3-PD B3 Negative Healthcare Services to Consumers
25. Quorum Health Corporation Caa1-PD Caa1 Stable Hospitals or other facilities-based providers
26. Radiology Partners Caa1-PD Caa1 Stable Healthcare Services to Consumers
27. SM Wellness Holdings B3-PD B3 Negative Healthcare Services to Consumers
28. Sound Inpatient Physicians Caa2-PD Caa2 Stable Hospitals or other facilities-based providers
29. Team Health Holdings Caa3-PD Caa3 Stable Healthcare Services to Consumers
30. TecoStar Holdings Caa3-PD Caa3 Stable Medical Devices
31. U.S. Renal Care Caa1-PD Caa1 Stable Hospitals or other facilities-based providers
32. US Radiology Specialists B3-PD B3 Negative Healthcare Services to Consumers
33. Viant Medical Holdings Caa1-PD Caa1 Stable Medical Devices
34. Vyaire Medical Caa2-PD Caa2 Stable Medical Devices