S&P Global Ratings revised Jasper, Ind.-based Memorial Hospital and Health Center's outlook to negative from stable.
"The outlook revision reflects our view of the continued softening of Memorial's profitability in fiscal year 2016 as well as the continued operating margin compression year-to-date for fiscal [year] 2017, both of which are underperforming budget expectations," said S&P analyst Wendy Towber. "The negative outlook also reflects our view of Memorial's departure from a multiyear trend of stable financial metrics, due in part to declining inpatient volumes and a shift in payer mix."
The ratings agency also affirmed the "A-" long-term rating on MHHC's $53 million of series 2013 revenue bonds.