Fitch Ratings has placed 15 nonprofit hospitals on rating watch negative due to the financial pressures of the COVID-19 pandemic.
The credit rating agency said the 15 hospitals are facing margin pressure primarily due to the loss in revenue from suspending elective procedures as well as seeing weaker liquidity levels given the dislocation of the equities market.
"The ratings now placed on negative watch have comparatively light levels of liquidity, which is a heightened concern given revenue pressures during this time frame, or are smaller in terms of net patient revenue [most are single-site facilities] reflecting greater vulnerability to the risks associated with added expenses and reduced elective revenue associated with the coronavirus pandemic," Fitch said.
The 15 hospitals are:
- Boone Hospital Center (Columbia, Mo.)
- Care New England (Providence, R.I.)
- Ector County Hospital District (Odessa, Texas)
- Erlanger Health System (Chattanooga, Tenn.)
- Holy Redeemer Health System (Meadowbrook, Pa.)
- Jennie Stuart Medical Center (Hopkinsville, Ky.)
- John Fitzgibbon Memorial Hospital (Marshall, Mo.)
- Lifespan Corp. (Columbia, Md.)
- Memorial Health System (Marietta, Ohio)
- Pioneers Memorial Healthcare District (Brawley, Calif.)
- Regional West Health Services and Affiliates (Scottsbluff, Neb.)
- South Nassau Communities Hospital (Oceanside, N.Y.)
- Southeastern Regional Medical Center (Lumberton, S.C.)
- Wayne Healthcare (Greenville, Ohio)
- Wise Regional Health System (Decatur, Texas)