The system’s strengths were considered for the rating affirmation, including its excellent financial profile and strong market leadership. Bayhealth maintains a dominant position in its primary service area, with a stable market share around 80 percent.
Bayhealth’s challenges were also considered for the rating affirmation, such as an ongoing construction project with an estimated total cost of $300 million. Fitch believes Bayhealth has room to absorb significant cash demands and potential new debt associated with the construction project at the “AA-” rating level. However, “material deviations from the budget may lead to negative rating pressure,” according to Fitch.
The system’s outlook is stable.
More articles on healthcare finance:
Ascension sees operating margin increase on higher patient volume: 6 things to know
Doing more with less: Strategies for competing on price, quality and both at the same time
S&P joins Moody’s in raising outlook on nonprofit healthcare
