The outlook for the six-hospital system is negative.
“The lower rating and negative outlook reflect Methodist’s weakening financial profile, including rising operating losses and falling unrestricted reserves,” S&P said.
Offsetting the weaker financial profile is the system’s strong market share in its core area around Memphis and improving trends in key labor metrics.
Methodist Le Bonheur reported a first-half operating loss of $110.3 million on revenue of $910.5 million for 2023, an operating margin of -12.1%.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.