The affirmation is a result of Catholic Health’s cost reduction strategies, governance changes and growth initiatives, which Moody’s expects will lead to sustained operating improvements. In addition, Moody’s acknowledged the health system’s leading market position and low debt..
The maintenance of the negative outlook is a result of the health system’s credit challenges, which include a high reliance of governmental payers, a heavily unionized workforce, increasing competition and large pension obligation. These risks may increase leverage metrics next year.
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California health system’s bankruptcy challenged by employee union
Oklahoma hospital on brink of closure gets taxpayer infusion to make payroll
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