Additionally, Fitch downgraded the district’s issuer default rating to “A-” from “AA-.”
The downgrade is a result of several factors, including the hospital district’s weak payer mix, limited cost flexibility and weak financial profile exemplified by light liquidity metrics and uneven operating profitability. Fitch favorably viewed the districts significant tax margin that supports operations.
The outlook is stable at the lower rating.
More articles on healthcare finance:
Fewer medical mistakes saved hospitals $2.9B from 2014 to 2016
$28k: The average price healthcare will cost a family of 4 in 2018
9 latest hospital credit downgrades