Such headwinds include macroeconomic ones such as labor and inflationary pressures as well as ones specific to the hospital group like the planned MedStar Georgetown University Hospital project scheduled to open in late 2023, the ratings agency said.
“Longer-term, we expect performance to remain consistent and supportive of the rating but anticipate possible headwinds as the Georgetown project is completed and operations ramp up and staffing needs persist,” the S&P report said.
Operating improvement and cost-reduction initiatives, as well as the implementation of various processes to address labor and staffing challenges, will help mitigate such headwinds, the report added.
The hospital group, which operates 10 hospitals in Washington, D.C., and Maryland, reported a net loss of approximately $200 million for fiscal year 2022 amid a “volatile” investment market.
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