Beaver, Pa.-based Heritage Valley Health System suffered a credit downgrade on its default rating following sustained operating challenges that are not likely to recover substantially for the foreseeable future, Fitch said July 14.
While management has plans for a financial turnaround, which should lead to some operating recovery in fiscal 2024, results are expected to remain negative over the near term with a "gradual recovery," Fitch said.
The two-hospital system was downgraded from "AA-" to "A+" and the outlook is stable. Further downgrades cannot be ruled out, Fitch said.
Heritage Valley Health operates 465 beds in its two facilities close to Pittsburgh.