In addition, the rating was revised to developing from stable as a result of the risks associated with the health system’s merger with Manchester, N.H.-based Elliot Health System.
“The developing outlook reflects both negative and positive considerations for the rating through the two-year outlook period,” said S&P Global Ratings credit analyst Kelsey Thomas. “The negative consideration is associated with the potential risk of a formal combination with [EHS], and our view of [EHS’s] lower credit quality. The positive consideration for SNHHS’ bond ratings is tied to the underlying credit quality of SNHHS itself, and our view that we could raise the ratings if it continues to produce strong operating and cash flow margins.”
More articles on healthcare finance:
Major Kindred shareholder dubs $4.1B acquisition deal ‘grossly inadequate’
Top 10 healthcare finance stories of 2017
Maine hospital attributes Medicare penalty to employee coding errors
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.