The outlook was revised from positive to stable, but the 16-hospital system is expected to effectively deal with such challenges amid a robust financial profile.
“Fitch fully expects IU Health to successfully complete its capital plans on time and on budget while continuing to meet or exceed ‘AA’ median levels for balance sheet and operating metrics,” the Fitch note said.
Such plans include the $2.3 billion consolidation of its two adult hospitals in Indianapolis into one replacement hospital as well as a number of other capital projects.
The recent credit analysis includes an assumption there may be new debt issued every two years, Fitch said, with some of such debt going to finance manageable capital projects. IU Health had $8.1 billion of revenues in 2022.
