Fitch downgrades University Health System to 'BBB,' maintains negative outlook

Fitch Ratings downgraded its rating on Knoxville, Tenn.-based University Health System to "BBB" from "BBB+." At the same time, Fitch assigned the health system its "BBB" issuer default rating.

The downgrade and assignment are a result of the health system's decline in operating profitability, which negatively affected the system's liquidity and net leverage position. Fitch favorably viewed the health system's recently completed project that added 44 beds, which will ease capacity constraints and boost its reputation as the area's sole academic medical center.

The outlook remains negative, reflecting the health system's weakened operating margins.

More articles on healthcare finance:
CMS eases readmission penalties for safety-net hospitals
Memorial Sloan Kettering shifts fundraising focus as problems mount
4 tips to improve revenue cycle now

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months