The downgrade reflects John Fitzgibbon’s ongoing pressured operations, which resulted in an operating loss of $6.2 million in fiscal 2024, according to a June 21 report from Fitch. The rating also highlights the hospital’s light liquidity position, small size, and challenging payer mix, “which provide a very low margin for safety.”
Fitch said the hospital has continued targeting strategic efforts to address operational pressure. This includes revenue cycle enhancements, consolidation of clinics and providers, and capturing opportunities with the 340B program. The efforts have resulted in a positive 3.8% operating margin for the hospital division in 2024. However, fiscal 2024 operating results are “well below budgeted levels despite these efforts due to high labor and other expenses.”
Fitch does not typically assign rating outlooks to the “CCC” category.
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