While there was compression in fiscal 2020, margins recovered “significantly” in the next two fiscal years and are expected to remain stable through the remainder of fiscal 2023, the rating agency said. The rating on the bonds was also affirmed at “BBB+.”
In addition, the system’s solid market share is supported by the niche characteristic of its flagship 183-licensed-bed Mercy Medical Center as a low-cost community hospital in downtown Baltimore, S&P said.
“We expect MHS will sustain the financial performance and balance sheet improvement during the outlook period, as overall volumes have remained consistent and there is no expectation of significant capital or debt plans,” the research note said.
In addition to its main campus, Mercy Health operates approximately 40 physician sites in Maryland.
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