Ontario, Calif.-based Prime Healthcare has had its credit rating affirmed at "B-" amid expectations that its operating outlook will improve in 2023, S&P Global said.
While the system's labor costs, among other challenges, have been elevated and have contributed to "lower than expected performance," there is an anticipated decrease in such costs as well as support from state subsidies to help offer more optimism in 2023.
Market specific issues such as the recent unprofitability affecting the system's Saint Mary's Regional Medical Center in Reno, Nev., are also unlikely to continue in 2023, S&P said.
The rating comes after Prime was hit with a credit downgrade by Moody's in November because of operating pressures and elevated debt concerns.
The S&P "B-" rating refers to both the system's issuer credit rating and specific debt notes.
Prime Healthcare and a nonprofit arm, Prime Healthcare Foundation, comprise 45 hospitals and more than 300 outpatient locations in 14 states.