Only three acute-care hospitals and health systems received a credit downgrade between Dec. 15 and Jan. 14, according to a report by HFA Partners.
The hospitals and health systems receiving credit downgrades included:
• Fort Healthcare (Fort Atkinson, Wis.) — from BBB+ to BBB (S&P)
• Lawrence + Memorial Hospital (New London, Conn.) — from A+ to A (S&P)
• Robinson Memorial Hospital (Ravenna, Ohio) — from Baa3 to B3 (Moody's)
L+M has been facing labor challenges for the past several months. Unionized nurses and technicians went on a strike in November in pursuit of a new contract. The hospital then locked the employees out, but the lockout ended in December.
Seven acute-care hospitals and health systems garnered a credit upgrade in the past month:
• Cedars Sinai Medical Center (Los Angeles) — from A2 to A1 (Moody's)
• Children's of Alabama (Birmingham) — from A to "A+" (S&P)
• MultiCare Health System (Tacoma, Wash.) — from A1 to Aa3 (Moody's)
• Rady Children's Hospital (San Diego) — from A2 to A1 (Moody's)
• Sharp HealthCare (San Diego) — from A+ to AA- (S&P)
• South County Hospital (Wakefield, R.I.) — from Ba1 to Baa3 (Moody's)
• Upper Chesapeake Health (Bel Air, Md.) — from Baa1 to A2 (Moody's)
This marks only the third time since last year when hospital upgrades have outpaced downgrades. Last August and January were those two instances.
Three hospitals and health systems also had positive outlook changes, while six hospitals and health systems had negative outlook changes.
Related Articles on Hospital Credit Ratings:
Moody's: Academic Medical Centers Maintain Strong Credit
13 Statistics on S&P's Speculative-Rated Hospitals
EHRs and Health IT Projects: Are They Battering Hospitals' Financial Profiles?