Marshall, Mich.-based Oaklawn Hospital’s credit rating was downgraded to “BB+” from “BBB-” by Fitch.
Through the first three quarters of fiscal 2026 — ended Dec. 31 — Oaklawn recorded an operating loss of about $6.5 million, Fitch said in a March 4 report. The 78-bed hospital’s financial pressures are driven by losses in some service lines, payment issues stemming from rising denials and bad debt, and more expensive external support for operations.
Oaklawn has a negative outlook at its new rating, reflecting Fitch’s expectations that the financial challenges will persist.
Fitch said Oaklawn has some stability from its market position, but it expects operations to remain pressured over the next few years as the hospital focuses on culling some unprofitable service lines and investing in more profitable lines.
Oaklawn’s initiatives are expected to cut its operating losses in half in fiscal 2027 and reach break-even in 2028, Fitch said.
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