Meadowbrook, Pa.-based Redeemer Health has had its outlook revised to negative amid "persistent operating losses," Fitch Ratings said June 14.
The health system, anchored by a 260-bed acute care hospital, reported a $37 million operating loss in the nine months ending March 31, Fitch said. Pressures from staffing expenses, supply chain issues and inflation are adding to the financial difficulties.
Redeemer Health said in 2022 it was seeking a "strategic partnership" to help alleviate such pressures, a move which Fitch approved of in the note.
The system partnered in January with Philadelphia-based Temple University Health to acquire Chestnut Hill Hospital in Philadelphia, gaining a 20 percent stake. That transaction was not taken into account for the outlook revision and debt affirmation.
Bonds and default ratings were affirmed at "BB+."