8 Hospitals Receive Credit Downgrades in Past Month

Eight hospitals and health systems received a credit downgrade between Jan. 15 and Feb. 14, according to a report by HFA Partners.

The hospitals and health systems receiving credit downgrades included:

•    Centegra Health System (Crystal Lake, Ill.) — from A- to BBB+ (S&P)
•    Citrus Memorial Hospital (Inverness, Fla.) — from B3 to Caa3 (Moody's)
•    Dickinson County Healthcare System (Iron Mountain, Mich.) — from Ba1 to Ba2 (Moody's)
•    National Jewish Health (Denver) — from BBB- to BB+ (Fitch)
•    North Mississippi Health Services (Tupelo, Miss.) — from AA to AA- (S&P)
•    PeaceHealth (Vancouver, Wash.) — from AA- to A+ (Fitch)
•    Phoebe Putney Health System (Albany, Ga.) — from Aa3 to A1 (Moody's)
•    St. Joseph's Hospital Health Center (Syracuse, N.Y.) — from BB+ to BB (S&P) and from Ba1 to Ba2 (Moody's)

In January, HCA West Florida, a subsidiary of Nashville, Tenn.-based Hospital Corporation of America, signed a letter of intent to lease the financially troubled Citrus Memorial Hospital. HCA would pay $140 million and invest at least $45 million in capital improvements over the next five years. HCA beat out Tampa (Fla.) General Hospital in the Citrus Memorial bidding process, but a definitive agreement has not been reached.

Six acute-care hospitals and health systems garnered a credit upgrade in the past month:

•    Ann & Robert H. Lurie Children's Hospital of Chicago — from A- to A (S&P)
•    Cherokee Nation Healthcare (Tahlequah, Okla.) — from BBB- to BBB (Fitch)
•    Chickasaw Health System (Ada, Okla.) — from BBB- to BBB (Fitch)
•    Norman (Okla.) Regional Health System — from BB+ to BBB- (S&P)
•    Rush University Medical Center (Chicago) — from A to A+ (Fitch)
•    Virginia Hospital Center (Arlington, Va.) — from A+ to AA- (Fitch)

Three hospitals and health systems also had positive outlook changes, while nine hospitals and health systems had negative outlook changes.

Related Articles on Hospital Credit Ratings:
3 Hospitals Receive Credit Downgrades in Past Month
EHRs and Health IT Projects: Are They Battering Hospitals' Financial Profiles?
S&P: Nonprofit Hospitals to Experience Big Negative Pressures Next Year

 

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