Here are seven health systems with strong operational metrics and solid financial positions, according to reports from Fitch Ratings, Moody's Investors Service and S&P Global Ratings.
Note: This is not an exhaustive list. Hospital and health system names were compiled from credit rating reports and are listed in alphabetical order.
1. Cincinnati-based Bon Secours Mercy Health has an "AA-" rating and stable outlook with Fitch. The health system has a good payer mix, a leading position in several of its markets and adequate margins to support its growth, Fitch said. The credit rating agency expects the system to maintain strong operating profitability.
2. Children's Hospital of Philadelphia has an "Aa2" rating and stable outlook with Moody's and an "AA" rating and stable outlook with S&P. The hospital has a strong market position and healthy liquidity, Moody's said. The credit rating agency expects CHOP's market position and brand equity will support its recovery from disruption caused by COVID-19.
3. Cincinnati Children's Hospital has an "Aa2" rating and stable outlook with Moody's. The hospital has a dominant market position, a national and international reputation in clinical care and research, and it ranks among the top independent children's hospitals in the U.S., Moody's said. The credit rating agency expects the hospital's continued cost management to mitigate prolonged volume recovery from the pandemic and strong demand to eventually drive margin improvement.
4. Indianapolis-based Indiana University Health has an "Aa2" rating and stable outlook with Moody's and an "AA" rating and stable outlook with Fitch. The 16-hospital system had strong pre-COVID-19 margins and liquidity, which will help absorb a temporary decline in performance due to the pandemic, Moody's said. The credit rating agency expects IU Health to maintain strong margins and strong liquidity.
5. Broomfield, Colo.-based SCL Health has an "AA-" rating and stable outlook with Fitch and an "Aa3" rating and stable outlook with Moody's. The system has a track record of exceptional operations, consistent improvement in unrestricted liquidity levels and significant financial flexibility, Fitch said. The credit rating agency said SCL Health is well positioned to manage the pressures of COVID-19, having built up cash reserves.
6. San Diego-based Scripps Health has an "AA" rating and stable outlook with Fitch and an "Aa3" rating and stable outlook with Moody's. The health system has a strong balance sheet, strong operations and has maintained a low leverage position, Fitch said. The credit rating agency expects Scripps will continue generating operating levels that are consistent with historical trends following recovery from the pandemic.
7. San Diego-based Sharp HealthCare has an "Aa3" rating and stable outlook with Moody's and an "AA" rating and stable outlook with S&P. The health system has a healthy financial profile, an excellent balance sheet, a solid business position and is the leading provider in a competitive service area, S&P said. The credit rating agency said the system's financial performance has remained stable despite COVID-19 and the recession.
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