Here are nine hospitals and 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. St. Louis-based Ascension has an "AA+" rating and stable outlook with Fitch. The system has a strong financial profile and a significant presence in several key markets, Fitch said. The credit rating agency expects Ascension will continue to produce healthy operating margins.
2. Phoenix-based Banner Health has an "AA-" rating and stable outlook with Fitch and S&P. Banner's financial profile is strong, even taking into consideration the market volatility that occurred in the first quarter of this year, Fitch said. The credit rating agency expects the system to continue to improve operating margins and to generate cash flow sufficient to sustain strong key financial metrics.
3. 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.
4. 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.
5. Milwaukee-based Children's Wisconsin has an "Aa3" rating and stable outlook with Moody's and an "AA" rating and stable outlook with S&P. The health system has strong cash flow margins, Moody's said. The credit rating agency expects the health system's financial performance to remain solid, given its commanding market presence and demand for services.
6. Philadelphia-based Main Line Health has an "AA" rating and stable outlook with Fitch. The credit rating agency expects the system's operations to recover after the COVID-19 pandemic and for it to resume its track record of strong operating cash flow margins.
7. Midland-based MidMichigan Health has an "AA-" rating and stable outlook with Fitch. The system has generated healthy operational levels through fiscal year 2020, and Fitch expects it to continue generating strong cash flow.
8. Columbus, Ohio-based Nationwide Children's Hospital has an "Aa2" rating and stable outlook with Moody's. The system has a strong market position in pediatric services in Columbus and the broad central Ohio region, and its advanced research capabilities will support volume recovery from disruption caused by COVID-19, Moody's said. The credit rating agency expects Nationwide Children's margins to remain strong and for cost management initiatives and volume recovery to drive improvements.
9. Chicago-based Northwestern Memorial HealthCare has an "Aa2" rating and stable outlook with Moody's. The health system had strong pre-COVID margins and liquidity, Moody's said. The credit rating agency expects the system to maintain strong operating cash flow margins.