Additionally, S&P assigned its “BBB+” rating to Flagler Hospital’s series 2017A revenue bonds, affecting $32.6 million of debt.
“The lower rating reflects an increase in debt, coupled with weaker-than-expected operating results that began in fiscal 2016 and accelerated through the nine month interim period ended June 30, 2017,” said Stephen Infranco, an S&P Global Ratings credit analyst.
S&P also acknowledged the hospital’s declining patient volume.
The outlook is stable, reflecting S&P’s expectation that Flagler Hospital’s operating margin will improve in fiscal year 2018 due in part to a Medicaid modifier that took effect July 1, which enables Flagler to be designated as a rural hospital.
More articles on healthcare finance:
Lurie Children’s Hospital receives $3.5M from Chicago Cubs first baseman
How a critical access hospital bounced back from the brink of bankruptcy: 5 questions with Carthage Area Hospital CFO Rob Bloom
Cheyenne Regional Medical Center no longer at risk of losing CMS contract
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.