In addition, Moody’s concurrently downgraded Dayton-based Miami Valley Hospital’s bonds to “A3” from “A2,” as the hospital is a member of the PHP’s obligated group.
The downgrade is a result of several factors, including PHP’s pressured operating margins with the loss of its contract with UnitedHealth Group and reduced Medicaid payments. Moody’s also acknowledged that PHP will benefit from its decision to sell its health plan and noted that PHP has solid cash on hand.
The outlook was revised to negative from stable, reflecting Moody’s expectation that PHP’s margins may decrease further, especially if the loss of the UnitedHealth Group contract results in patient volume declines.
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