RWJBarnabas outlook revised to negative

Reduced cash flow and an ongoing need to fund capital expenditure projects has resulted in an outlook revision to negative for West Orange, N.J.-based RWJBarnabas Health, Moody’s said July 25.

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The system, which includes 12 acute-care hospitals, had an “Aa3” rating affirmed on approximately $3.3 billion of debt. 

“The revision of the outlook to negative from stable reflects challenges RWJBH will face in restoring cash flow and likely further dilution of days cash and cash to total debt metrics in light of planned capital spend,” Moody’s said in the note.

As well as the acute-care hospitals, RWJBarnabas operates three acute-care children’s hospitals, a pediatric rehabilitation hospital and several outpatient facilities. The system had $7.6 billion in revenues in fiscal 2022, Moody’s said.

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