Lancaster, Ohio-based Fairfield Medical Center’s credit rating was downgraded to “B1” from “Ba3” by Moody’s.
The downgrade reflects the hospital’s challenging financial performance and headwinds to material improvement, Moody’s said in its April 8 report. Fairfield Medical has a negative outlook at its new rating.
Moody’s said the hospital’s performance worsened in fiscal 2025, with a -3% operating cash flow margin. The decline was driven by lower-than-budgeted volumes, reimbursement and a “persistently challenging expense environment.”
Fairfield Medical’s management is engaging in performance improvement initiatives and service line consolidation where feasible to stabilize performance in 2026.
The 222-bed hospital signed a definitive agreement in September with Columbus-based OhioHealth. The deal, subject to regulatory approval, would make Fairfield Medical OhioHealth’s 17th hospital.
Moody’s did not incorporate the potential acquisition into the rating due to the uncertainty around the lengthy regulatory approval process and the hospital’s credit deterioration.
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