Hospital Sisters Health faces slow return to profitability, outlook revised to stable

Springfield, Ill.-based Hospital Sisters Health System has had its outlook revised to stable from positive as it faces a gradual return to improved operating numbers, Fitch Ratings said in a March 7 research note.

Specific bonds HSHS has as well as its default rating were affirmed at an "A+" rating, Fitch said.

"The stable rating outlook considers that as HSHS continues to execute on strategies, which it believes will help it rebound from the pressures of rising labor and supply costs, its operational metrics should improve over time," the note said. Capital ratios are also likely to improve.

HSHS management has reported an improved operating loss from a negative 9.5 percent in first quarter fiscal 2023 to negative 2.6 percent in the second quarter, the report said. In addition, any possible debt for capital expenditure plans should be able to maintain the system's current rating.

Hospital Sisters Health System owns 15 hospitals in its home state and Wisconsin with total operating revenue of $2.9 billion in fiscal 2022, Fitch said.

Copyright © 2023 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars