Eight hospitals and health systems received a credit downgrade between Feb. 15 and March 14, according to a report by HFA Partners.
The hospitals and health systems receiving credit downgrades included:
• Arnot Ogden Medical Center (Elmira, N.Y.) — from Baa1 to Baa3 (Moody's)
• Davis Health System (Elkins, W.Va.) — from B2 to Caa3 (Moody's)
• King's Daughters Medical Center (Ashland, Ky.) — from A+ to A (Fitch)
• Palomar Health (Escondido, Calif.) — from Baa3 to Ba1 (Moody's)
• PeaceHealth (Vancouver, Wash.) — from A+ to A (S&P)
• St. Joseph Health Services (North Providence, R.I.) — from Caa2 to Caa3 (Moody's)
• Summit Healthcare Regional Medical Center (Show Low, Ariz.) — from BBB+ to BBB (S&P)
• UMass Memorial Health Care (Worcester, Mass.) — from Baa1 to Ba1 (Moody's)
Two of the systems that received downgrades — Davis Health System and St. Joseph — are in precarious financial positions. Moody's said at the end of calendar year 2013, Davis Health System had only 28 days cash on hand and an operating margin of -3.9 percent. St. Joseph had 15 days cash on hand and a -13.7 percent operating margin in the first quarter of its 2014 fiscal year.
For PeaceHealth, a nine-hospital Catholic network, this is the second straight month it has received a credit downgrade. Fitch lowered the system's credit rating from AA- to A+ last month.
Four acute-care hospitals and health systems garnered a credit upgrade in the past month:
• Geisinger-Lewistown (Pa.) Hospital — from BBB- to AA (S&P) and from Ba1 to Aa2 (Moody's)
• Northfield (Minn.) Hospital & Clinics — from BBB- to BBB (S&P)
• Poudre Valley Health System (Fort Collins, Colo.) — from A+ to AA- (Fitch)
• Rex Healthcare (Raleigh, N.C.) — from A+ to AA- (S&P)
Four hospitals and health systems also had positive outlook changes, while eight hospitals and health systems had negative outlook changes.
Related Articles on Hospital Credit Ratings:
Fitch: ICD-10 Could Hurt Nonprofit Hospitals' Credit Ratings
Moody's: 6 Hospitals With Credit Challenges Related to EHRs
Fitch: 11 Hospitals With Strong Finances