While it affirmed a rating of "A+" on debt levels for Asante Health, Fitch Ratings has downgraded the outlook for the Medford, Ore.-based healthcare system to negative from stable.
The change reflects concerns about the group's operating environment, which is weakening its balance sheet amid inflationary pressures on labor and supplies, Fitch said. The healthcare system has "limited flexibility" to manage any volatility in its operations or construction-related issues, Fitch said.
Asante is building a 323,000-square-foot patient pavilion next to the Asante Rogue Regional Medical Center, which will house a children's and women's hospital as well as provide services in cardiac care, critical care and advanced surgery.
That $420 million project is part of a $1 billion capital investment plan for the Oregon system.
Asante is a community-owned and governed nonprofit system with nearly 6,000 employees who provide medical care to nearly 600,000 people in a nine-county area of Southern Oregon and Northern California.