“The revised outlook reflects improved operating performance and debt service coverage and some balance sheet growth, though certain metrics remain below median levels due to very high debt,” said S&P credit analyst Jessica Goldman.
The rating affirmation is based on several factors, including the stability provided by the Maryland rate-setting system, which diminishes the payer mix’s effect, reduces the burden of uncompensated care and eliminates market power issues from health plan negotiators.
The stable outlook reflects S&P’s expectation that Mercy will be able to sustain its recent improvement and continue to build balance sheet strength over time.
More articles on finance:
Why HCA is taking the road less traveled when it comes to expansion
S&P rates Allina Health System’s bonds
Fitch rates Providence Health & Services’ bonds
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.