Fayetteville, Ark.-based Washington Regional Medical Center’s credit rating was downgraded to “Ba1” from “Baa3” by Moody’s.
The downgrade reflects Washington Regional’s sustained operating losses and resulting liquidity pressure, Moody’s said in a March 2 report.
Moody’s said the lack of improvement in operating performance over multiple years “suggests limited near-term recovery.”
“While there are some prospects for revenue growth, including improved payer rates and potential market expansion, recent inability to execute on any performance improvement provides uncertainty around the level of potential operating improvement,” Moody’s said.
Washington Regional has a negative outlook at its new rating, which Moody’s said reflects the possibility of further operating performance volatility and liquidity erosion if leadership is unable to achieve targeted operating improvements.
