Multiple hospitals and health systems have suffered downgrades to their financial ratings this year amid rising expenses, ongoing operating losses and challenging work environments.
Here are eight hospitals and health systems that received credit rating downgrades from Fitch Ratings or Moody’s Investors Service in 2026:
Children’s Hospital Los Angeles’ credit rating was downgraded to “Ba2” from “Ba1” by Moody’s. The downgrade reflects the system’s challenged operations and weak liquidity, driven by its heavy reliance on state funding due to its significant Medicaid exposure, Moody’s said.
John Fitzgibbon Memorial Hospital’s credit rating was downgraded to “D” from “C” by Fitch. The downgrade stems from the Marshall, Mo.-based hospital’s failure to make required debt payments. Fitch withdrew the hospital’s issuer and bond ratings following the payment default.
Mary Greeley Medical Center’s rating was downgraded to “A3” from “A2” by Moody’s. The downgrade is driven by the negative impact of the opening of an ASC joint venture between the hospital and an independent physician group, which will continue to significantly reduce hospital surgeries and materially impact operating revenue, Moody’s said.
Naples (Fla.) Comprehensive Health’s credit rating was downgraded to “BBB+” from “A-” by Fitch and to “Baa1” from “A3” by Moody’s. The downgrades reflect slower-than-expected margin improvement. The system’s high leverage and ongoing capital needs also limit balance sheet flexibility, even with the system’s leading market position and strong philanthropy.
Parkview Health’s credit rating was downgraded to “A1” from “Aa3” by Moody’s. The Fort Wayne, Ind.-based system’s downgrade reflects a lower level of normalized operating performance and increasing capital spending that will likely require additional borrowing, Moody’s said.
Presbyterian Healthcare Services’ credit rating was downgraded to “AA-” from “AA” by Fitch. The downgrade reflects several years of weak operating performance at the Albuquerque, N.M.-based integrated health system, Fitch said.
Oaklawn Hospital’s credit rating was downgraded to “BB+” from “BBB-” by Fitch. Through the first three quarters of fiscal 2026 — ended Dec. 31 — the Marshall, Mich.-based hospital recorded an operating loss of about $6.5 million, Fitch said. Financial pressures have been driven by losses in some service lines, payment issues stemming from rising denials and bad debt and more expensive external support for operations.
Washington Regional Medical Center’s credit rating was downgraded to “Ba1” from “Baa3” by Moody’s. The downgrade reflects the Fayetteville, Ark.-based system’s sustained operating losses and resulting liquidity pressure, Moody’s said.
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