The revision reflects improvements to Care New England’s credit profile since Fitch assigned a negative outlook in 2022, the ratings agency said in a May 8 report.
Fitch said a new CEO and CFO started in December 2022 and February 2023, respectively, and other changes were made at the senior management level. The new team initiated a series of action plans that improved operating performance.
Fitch also affirmed the system’s “BB-” rating. It said that Care New England’s unrestricted liquidity, while stabilized, “remains challenged, particularly given the system’s elevated average age of plant and upcoming capital needs, which is reflective of the ‘BB-‘ rating.”
“Fitch believes that management has taken a sustainable approach to operational improvement, which in combination with top line drivers, revenue growth and cost savings should contribute to continued modest operating profitability,” it said in the report.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
