The 12-hospital system recorded a loss of just over $145 million for the first half of the year, a “very modest” performance but one that did improve on the same period in 2022. Still, such recovery was below expectations, Fitch said.
“The negative outlook reflects operating margins in interim [fiscal year 2023] that, while improved markedly over interim [fiscal year 2022], continue to be considerably compressed and have not rebounded to levels expected when Fitch downgraded the system in fall 2022,” according to the note.
Positive factors going forward include a track record of MultiCare generating strong operating metrics and solid market share, Fitch said.
“Of note, despite continued operating losses, MultiCare continues to record volume gains,” it added.
