The decision to take the ratings off negative watch is because Regional West entered an agreement to fix a default issue. The problem arose when Regional West couldn’t cover its debts well in 2022.
According to management of the hospital, the losses in 2022 were mainly due to ongoing issues with its Cerner EHR system and increased costs.
In 2023, the hospital got better in how it operated, according to Fitch. For example, Regional West made improvements in revenue cycle management, managing employee costs and shutting down services that weren’t profitable.
The hospital also gained $47.5 million in proceeds by selling its part of the Medical Center of the Rockies in September. Regional West is using this money to pay off debts, buy new equipment and have more cash on hand.
However, there’s still a bit of concern, according to the report. Even though things are getting better, the outlook isn’t all positive.
Fitch says Regional West might not see an operating profit in 2023, and this might continue into 2024. As of Sept. 30, the numbers show that Regional West had some difficulties in its financial margins. Fitch expects Regional West to do better in 2024, but if they don’t keep improving, the rating might go down.
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