Here are 20 health systems that recently had their outlooks upgraded by Fitch Ratings or Moody’s Investors Service in 2026.
Note: This is not an exhaustive list. Health systems were compiled from credit rating reports.
Adena Health System’s outlook was revised to stable from negative by Moody’s. The revision reflects the Chillicothe, Ohio-based system’s continued performance improvement, driven by stronger operations and increased supplemental funding that will support Adena through a period of higher leverage, Moody’s said. The system has an “A3” rating with the agency.
Arkansas Children’s outlook was revised to positive from stable by Moody’s. The revision reflects the Little Rock-based organization’s growing patient demand, philanthropy and state support, all of which Moody’s said will help sustain strong financial performance and liquidity. Arkansas Children’s has an “A1” rating with the agency.
Baptist Health Care’s outlook was revised to positive from stable by Fitch. The revision reflects the Pensacola, Fla.-based system’s leading market share in key service lines and the long-term benefits of a replacement hospital that opened in September 2023. The system has a “BBB” rating with the agency.
Baptist Memorial Health Care’s outlook was revised to positive from stable by Fitch. The revision reflects the Memphis, Tenn.-based system’s sustained operating performance improvement, Fitch said, adding that the system’s acquisition and integration success in recent years has been a key strength. The system has a “BBB+” rating with Fitch.
Cook Children’s Medical Center’s outlook was revised to positive from stable by Moody’s. The revision reflects the Fort Worth, Texas-based system’s strong financial performance and excellent management as it executes a multi-year, $1.25 billion capital project, Moody’s said. Cook Children’s has an “Aa2” rating with the agency.
Crouse Health’s outlook was revised to stable from negative by Fitch. The revision reflects the Syracuse, N.Y.-based system’s improved liquidity at the end of fiscal 2025, Fitch said. It also reflects Fitch’s anticipation of further balance sheet improvements from the March sale of laboratory assets to Labcorp and a $113 million Safety Net Transformation Program award from the state of New York. Crouse has a “B” rating with Fitch.
Dolly Parton Children’s Hospital’s outlook was revised to positive from stable by Fitch. The revision reflects the Knoxville, Tenn.-based hospital’s liquidity growth and strong cash flow generation, aided by support from Tennessee’s Hospital Investment Program, Fitch said. The hospital, formerly known as East Tennessee Children’s Hospital, has an “A” rating with the agency.
Fred Hutchinson Cancer Center’s outlook was revised to stable from negative by Moody’s. The revision reflects the Seattle-based organization’s significantly improved operating performance through the first six months of fiscal 2026 and Moody’s expectations that the results going forward will remain around current levels. Fred Hutchinson has an “A2” rating with Moody’s.
Halifax Health’s outlook was revised to positive from stable by Fitch. The revision reflects Fitch’s expectation that the Daytona Beach, Fla.-based system’s continued strong financial results will yield cash flows that are sufficient to support Halifax’s capital spending plans while growing its balance sheet. Halifax has an “A-” rating with Fitch.
Lucile Salter Packard Children’s Hospital’s outlook was revised to positive from stable by Moody’s. The revision reflects the Palo Alto, Calif.-based organization’s significant financial performance improvement, continued strengthening of debt measures and the ongoing growth and strengthening of the organization’s footprint, clinical offerings and revenue base, Moody’s said. LPCH has an “A1” rating with the agency.
McLeod Health’s outlook was revised to positive from stable by Fitch. The revision reflects the Florence, S.C.-based system’s successful strategic growth, strong operating results despite labor and inflation pressure, and adjusted leverage that shows “ample flexibility,” Fitch said. McLeod has an “AA-” rating with the agency.
Med Center Health’s outlook was revised to positive from stable by Fitch. The revision reflects the Bowling Green, Ky.-based system’s sustained operating profitability and strong cash flow generation, aided by revenue support from Kentucky’s Hospital Rate Improvement Program, Fitch said. Med Center Health has an “AA-” rating with the agency.
Methodist Hospitals’ outlook was revised to stable from negative by Fitch. The revision reflects the Gary, Ind.-based system’s recently improved supplemental Disproportionate Share Hospital payments and Fitch’s expectation that the payment stream will remain strong going forward. The system has a “BBB-” rating with the agency.
Northern Light Health’s outlook was revised to stable from negative by Moody’s. The revision reflects the Brewer, Maine-based system’s ongoing financial turnaround, which has allowed it to reduce operating losses and stabilize cash reserves, Moody’s said. Northern Light has a “Ba3” rating with Moody’s.
RWJBarnabas Health’s outlook was revised to positive from stable by Moody’s. The revision reflects the West Orange, N.J.-based system’s strengthened financial and operating performance and rising cash reserves, Moody’s said. These improvements come amid substantial capital investments, demonstrating the system’s highly effective financial strategy and risk management.
South Shore Health’s outlook was revised to stable from negative by Moody’s. The revision reflects quarterly improvement in financial performance at the South Weymouth, Mass.-based system and Moody’s expectations that strong margins demonstrated in the first quarter of fiscal 2026 will be sustained. The system has a “Baa2” rating with Moody’s.
Tallahassee (Fla.) Memorial HealthCare’s outlook was revised to positive from stable by Moody’s. The revision is driven by operational and liquidity improvement, along with the formalization of its relationship with Tallahassee-based Florida State University, which Moody’s said will “support notable capital capacity and market growth.” The system has a “Baa1” rating with Moody’s.
UPMC’s outlook was revised to stable from negative by Fitch. The revision reflects UPMC’s material operating performance improvement in 2025, Fitch said in a March 5 report. UPMC recorded an operating income of $286 million (0.9% operating margin) in 2025, an improvement from an operating loss of $339 million (-1.1% margin) in 2024. UPMC has an “A” rating with the agency.
Valleywise Health’s outlook was revised to positive from stable by Fitch. The revision reflects the Phoenix-based system’s financial turnaround in fiscal 2025, which has continued into fiscal 2026. The improvement was driven by a full year of the Safety Net Services Initiative and improved labor cost management. Valleywise has a “BBB” rating with Fitch.
Vandalia Health’s outlook was revised to stable from negative by Moody’s. The revision reflects the Charleston, W.Va.-based system’s improved cash flow, supported by new directed payment program funds, and expectations that balance sheet measures will build from currently modest levels. Vandalia has a “Baa1” rating with the agency.
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