Fitch downgraded Scottsbluff, Neb.-based Regional West Health Services’ credit rating by three notches to “B-” from “BB-.”
The downgrade reflects the hospital’s “sizable” fiscal 2024 operating losses, which were driven by disruptions related to its EHR conversion in October, compounding ongoing profitability challenges, Fitch said in a July 31 report.
Disruptions related to the EHR conversion also affected financial reporting, according to the report. Regional West has been unable to publish its first-quarter financial report as required in mid-May.
Fitch calculated that as of the end of fiscal 2024, the hospital had 11.9 days cash on hand, compared to 33.7 at the end of fiscal 2023.
Regional West was also placed on rating watch negative, reflecting the uncertainty around its operational turnaround, liquidity deterioration and lack of timely financial reporting.
