Multiple hospitals and health systems have suffered downgrades to their financial ratings this year amid rising expenses, ongoing operating losses and challenging work environments.
Here are five hospitals and health systems that received credit rating downgrades from Fitch Rating or Moody's Investor Services since June 12:
1. Moody's downgraded the ratings of Valhalla, N.Y.-based Westchester County Health Care Corp. and Charity Health System to "B1" from "Ba1." he downgrade of WCHCC's rating reflects a material decline in liquidity to a "very weak level concurrent with growing near-term demands on cash, increasingly high reliance on short-term bank lines, and higher-than-expected cashflow losses," Moody's said. The downgrade of CHS' rating is based on WCHCC's legal guarantee to pay debt service on CHS' bonds.
2. Fitch downgraded Marshall, Mo.-nased John Fitzgibbon Memorial Hospital's rating to "CCC-" from "CCC." The downgrade reflects John Fitzgibbon's ongoing pressured operations and highlights the hospital's light liquidity position, small size, and challenging payer mix, "which provide a very low margin for safety," Fitch said.
3. Moody's downgraded Bellevue, Wash.-based Overlake's rating to "Baa2" from Baa1." Its outlook has been revised to stable from negative. The ratings agency said the downgrade was driven by the system's weakened liquidity position and expected slow recovery of financial performance.
4. Moody's downgraded Montgomery, Ala.-based Jackson Hospital & Clinic's rating to "Caa2" from "B1." Its outlook remains negative. Moody's said the downgrade reflects its projection of Jackson's "deteriorated cash flow and financial position which has resulted in failure to make rental payments."
5. Fitch downgraded Meadowbrook, Pa.-based Holy Redeemer Health System's rating to "BB-" from "BB+." The ratings agency said the downgrade "reflects a multi-year trend of sizable operating losses that has led to a steady decline in liquidity, thereby reducing the system's financial flexibility."