Bend, Ore.-based St. Charles Health System's bond outlook has been revised from negative to stable by S&P Global ratings following years of challenge brought on by the pandemic, staffing shortages and financial woes.
"The outlook revision to stable from negative reflects our view of SCHS's meaningful rebound in operating performance and solid days' cash on hand that have allowed it to withstand operating pressure and recent industry headwinds," Aamna Shah, credit analyst for S&P Global Ratings, said in a Feb. 7 news release. "The rating further reflects our view that while SCHS has limited competition due to its location, an organizational disruption or weaker enterprise characteristics could lead to a negative rating action."
S&P's rating also affirmed St. Charles with an "A" long-term rating assigned to bonds it issued under the Deschutes County Hospital Facilities Authority in 2016 and 2020.
"We have been working incredibly hard for the past 18 months to stabilize the health system and it is nice that others recognize our improvement," Steve Gordon, MD, president and CEO of St. Charles, said in a Feb. 8 news release. "We have stabilized our workforce, stabilized our finances and are now able to lay the groundwork to better meet our region's growing needs for essential services now and in the future."
St. Charles' affirmed rating and improved outlook improve its capacity to borrow additional capital dollars down the line, the St. Charles release said.
A private, nonprofit health system, St. Charles comprises St. Charles Bend (Ore.) campus; St. Charles Redmond (Ore.) Campus; St. Charles Prineville (Ore.); and St. Charles Madras (Ore.), along with added family care clinics. It has more than 4,500 caregivers, including more than 350 active medical staff and almost 200 visiting medical staff to provide care and services.