While financial performance in fiscal 2022 was “compressed,” Froedtert Health, which has 10 hospitals under its wing, including its partnership with the Medical College of Wisconsin, continues to have a robust market share despite competition from larger health systems such as Charlotte, N.C.-based Advocate Health and St. Louis-based Ascension.
“FH posted solid, albeit compressed, operating and financial performance in fiscal 2022 and during the nine-month interim period (ending March 31, 2023) despite significant pressures from the heightened labor costs and broader macro inflationary pressures,” Fitch said.
Management expects the merger to be completed at the end of 2023, Fitch said. The agency is not taking any potential combined entity financials into account until the merger is approved.
The outlook for the health system is stable.
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