Boston Medical Center’s outlook was revised to negative from stable by Moody’s. The ratings agency said that although it expects the system will successfully integrate two hospitals it acquired from Dallas-based Steward Health Care, the revision reflects the downside risk given hospitals’ currently weak financial performance and the material investment required. Boston Medical Center has a “Baa2” rating with Moody’s.
Brown University Health’s outlook was revised to negative from stable by Fitch. The revision reflects that the Providence, R.I.-based system’s operating performance fell short of Fitch’s expectations in fiscal 2024 despite some improvements. Fitch also said that integrating two Massachusetts hospitals it recently acquired may pose execution risks that could hinder cash flow generation. The system has a “BBB+” rating with the agency.
Calvert Health System’s outlook was revised to negative from stable by Moody’s. The revision follows two consecutive years of performance below expectations, Moody’s said. The Prince Frederick, Md.-based system has a “Baa1” rating with Moody’s.
Hospital Sisters Health System’s outlook was revised to negative from stable by Fitch. The Springfield, Ill.-based system has seen its operating performance challenged over the past several years, Fitch said. HSHS’ performance was negatively affected by large one-time items, but its operational metrics were not at the level Fitch expected. The system has an “A+” rating with the agency.
NCH Healthcare System’s outlook was revised to negative from stable by Fitch. The revision highlights ongoing operational challenges faced by the Naples, Fla.-based system, resulting in margins below Fitch’s expectations for fiscal 2024. NCH has an “A-” rating with Fitch.
Oregon Health & Science University’s outlook was revised to negative from stable by Moody’s. The revision reflects the anticipated challenge for the Portland-based system to improve its operating performance following significant underperformance in 2024, Moody’s said. OHSU has an “Aa3” rating with Moody’s.
Presbyterian Healthcare Services’ outlook was revised to negative from stable. The revision reflects considerable operating pressure that the Albuquerque, N.M.-based system has faced in recent years, Fitch said. The system has an “AA” rating with Fitch.
South Shore Hospital’s outlook was revised to negative from stable by Moody’s. The revision reflects the Weymouth, Mass.-based hospital’s persistently weak operating performance, which Moody’s expects to continue into fiscal 2025. The hospital has a “Baa2” rating with the agency.
SSM Health’s outlook was revised to negative from stable by Fitch. The St. Louis-based system’s operating performance fell short of expectations in fiscal 2024, Fitch said. A one-time write-down related to revenue cycle accounted for most of its $123 million operating loss in 2024, but Fitch said the system’s operational performance “has been weak for several years.” SSM has an “AA-” rating with Fitch.
UPMC’s outlook was revised to negative from stable by Fitch. The Pittsburgh-based system has seen two years of “significant operating losses, leading to break-even operating cash flow and slightly weaker liquidity metrics,” Fitch said. UPMC has an “A” rating with Fitch.