Nuvance Health downgraded; consultant call-in likely

Danbury, Conn.-based Nuvance Health may not meet its debt service coverage obligations in fiscal 2023 and will therefore be likely to call in consultants, S&P Global said Sept. 21.

Advertisement

That news comes as the rating agency downgraded the seven-hospital system’s outstanding debt from “BBB+” to “BBB.” The outlook is negative.

“The downgrade reflects Nuvance’s significant operating losses and diminished unrestricted reserves that provide limited cushion even at the current rating,” said S&P Global Ratings credit analyst Anne Cosgrove.

Nuvance Health was similarly downgraded in July by Moody’s, which warned that the system faced a “pivotal” next several quarters. The system had $2.6 billion in revenue in 2022.

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Download Whitepaper

The cost-saving opportunity most health systems overlook

Many hospitals and health systems scrutinize staffing, service lines, and payer contracts for savings. Fewer look at one of their largest assets: real estate.…

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.