S&P has also affirmed its “A+” ratings on St. Luke’s other existing bonds.
“We assessed St. Luke’s enterprise profile as strong characterized by overall favorable demographics in a large primary service area, high-quality health metrics and a stable management and governance structure,” said S&P credit analyst Jennifer Soule.
St. Luke’s also faces several challenges, including its minority market share in a competitive service area that includes two large competing health systems.
The outlook is stable, reflecting S&P’s two-year view of St. Luke’s solid operations, healthy cash flow and stable position in a demographically favorable primary service area.
More articles on finance:
Average point-of-service collections increase to $1.8M in FY 2014: 4 things to know
Universal Health Services profit jumps 81.5% despite charity care growth
Study: Nonprofit hospitals need to improve charity care policies to meet ACA rules
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.