Philadelphia-based Temple University Health's outlook was revised to stable from positive following recent results S&P Global described as "very challenged" and "deeply negative."
The referenced results are interim fiscal 2023 figures that contrast significantly with expectations, S&P said March 15. Temple Health is in danger of not meeting debt coverage requirements as a result.
While the system has an adequate balance sheet as well as operating liquidity, the recent interim results, including an operating loss of over $100 million, were disappointing, S&P said.
"The revision to stable is based on TUHS' challenged operating results through the first half of fiscal 2023, which deviated from our expectation at last review and management's initial budget of just above breakeven," the research note stated.
Second-half results will include the incorporation of the majority-owned Chestnut Hill Hospital acquired from Tower Health in January 2023.
Temple Health now operates three acute care hospitals as well as its Fox Chase Cancer Center and inpatient behavioral health and women's hospital locations, categorizing it as a health system with revenues over $1.5 billion, the ratings agency said.