The downgrade is a result of the upcoming risk factors for the health system as it acquires four for-profit hospitals and increases its pro forma debt burden. Moody’s also acknowledged Pinnacle Health’s historically favorable financial performance and innovative strategic initiatives.
The outlook was revised to developing from stable, reflecting Moody’s expectation that integrating four distinct hospitals into the system will pose a challenge along with the uncertainty surrounding the pro forma debt.
More articles on healthcare finance:
Summa Health System to cut 300 jobs due to $60M operating loss
Hackensack Meridian Health, St. Vincent top achievers in patient pay recovery
60% of finance executives underestimate impact of QPP, survey says
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.