Springfield, Mass.-based Baystate Health had various ratings affirmed at "A+" as it continues to enjoy strong market share and a robust balance sheet despite recent operating losses, Fitch Ratings said March 10.
The rating applies both to its default rating and approximately $290 million of bonds. The outlook is stable.
While the system enjoys a 62.7 percent inpatient market share in its key service area of west central Massachusetts, the next leading health system has only 15 percent share locally.
In addition, Baystate does not anticipate any major new capital projects in the next two to three years, further boosting the possibility of a return to improved operating margins, Fitch said.
"Fitch expects Baystate's operating performance to improve in FY23, as some of the operating pressures begin to ease," the research note stated.
On a consolidated basis, total revenues in fiscal 2022 were approximately $2.8 billion. The system reported a $177.5 million operating loss in the period, Fitch said.
Baystate operates four hospitals including its flagship 780-bed Baystate Medical Center, physician group Baystate Medical Practices and an insurance arm, Health New England.