Novant Health has ratings affirmed as market share stays robust

Winston-Salem, N.C.-based Novant Health had ratings affirmed at their current level as the 14-hospital system continues to enjoy robust market share and resilient operating margins even as it faces the typical industry challenges brought on by labor pressures, Fitch Ratings said March 16.

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The “AA-” rating refers both to a series of bonds Novant Health holds as well as its default rating.

Novant Health has highly competitive market share in three separate North Carolina markets, Fitch said, including a leading position in Winston-Salem (46.8 percent) and second only to Atrium Health in the Charlotte area.

The rating affirmation also assumes approximately $500 million in capital spending and the costs of acquiring Lake Norman Regional Medical Center and Davis Regional Medical Center from Franklin, Tenn.-based Community Health Systems.

Novant Health had total revenues of approximately $7.6 billion in 2022, Fitch said.

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