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 difficult market:
Berkshire Health Systems (Pittsfield, Mass.): The healthcare system saw its credit rating affirmed at "AA-" as it continues to recover from COVID-19 pandemic effects with relatively robust results, Fitch Ratings said Jan. 24.
After reporting an operating loss in fiscal 2020, Berkshire recorded an operating gain of $20.1 million in 2021 and $12.1 million in 2022, according to Fitch. The rating affirmation refers both to overall debt and a specific set of $56 million bonds.
Denver Health and Hospital Authority: Colorado's safety net system had its overall and specific bond ratings affirmed at "BBB" as it targets a stable operating environment by 2025, Fitch Ratings said Feb. 7.
The rating follows Denver Health's Feb. 6 report of an operating loss of $60.7 million in 2022 amid a challenging expenses environment.
Harris Health System (Houston): Harris Health had its overall credit rating and that on specific bonds and other debt affirmed at "AA" because its strong tax revenue base largely offsets what Fitch Ratings called a "weak payer mix" and concerns about long-term capital expenditure.
The system, described by Fitch as among the 10 largest hospital districts in the country, is supported by up to $3 billion from the local tax base. In 2022, revenues totaled $4.5 billion, which included $815 million in property taxes, Fitch said.
Rush System for Health (Chicago): Rush has a strong financial profile despite ongoing labor issues and inflationary pressures, according to Fitch, which affirmed the system's "AA-" rating and stable outlook Feb. 13.
Rush includes several high-acuity services, is the "distinct market share lead of its local market," and its university operations report has strong enrollment demand and student quality, according to the report.
Stamford (Conn.) Health: The system has had its overall rating and that on specific bonds affirmed at "BBB+" as it looks forward to increasing financial strength over the next five years, Fitch Ratings said Feb. 7.
The rating confirmation comes shortly after the health system, centered around the 305-bed Stamford Hospital, reported positive operating income of $4.9 million for the fiscal year ended Sept. 30. Overall net loss for the year totaled approximately $38 million.
UCHealth (Aurora, Colo.): The 12-hospital system has had its overall credit rating and that on certain of its bonds affirmed at "AA" as it continues to enjoy a "track record of very strong operating margins," Fitch Ratings said Feb. 6.
While macro pressures such as elevated labor costs will continue to put pressure on the healthcare system, its margins are expected to remain robust, Fitch said.
University of Kansas Health (Kansas City, Kan.): The metropolitan Kansas City-based system, the flagship hospital of which has 880 licensed beds, has maintained an "AA-" rating on bonds it holds as well as a stable outlook, S&P Global said in a Feb. 13 report.
The rating is due to the system's solid market presence, good financial profile and solid management team, though some balance sheet figures remain relatively weak to peers, the rating agency said.