Springfield, Ill.-based Hospital Sisters Health System had its outlook revised to negative as it continued to experience "a meaningful deterioration in operating performance" with no quick turnaround expected, S&P Global said March 29.
Such a deterioration is due to industry-wide labor and wage pressures, service rationalization, patient throughput challenges, and inflationary pressures, the research note said. The agency affirmed its "A+" rating on various bonds.
While there are initiatives in place to reverse fortunes, it isn't going to be a quick process, S&P Global said.
"Although we expect HSHS' operations to progressively trend toward breakeven over the outlook period, we acknowledge that returning to profitability will likely be a multiyear process."
The system, which operates 15 hospitals in Illinois and Wisconsin, is planning about $100 million in capital spending in 2023, down on 2022 figures as management further tries to reduce costs.
HSHS reported an operating loss of $67 million in fiscal 2022.