The view was initially revised to negative from stable on March 25, 2020, and affirmed on Jan. 12, largely due to the pandemic.
S&P said the latest stable revision reflects the industry’s revenue recovery, ongoing balance sheet strength and proactive focus to maintain financial stability.
“While there are still meaningful headwinds in the sector, we believe the risk level has declined and is consistent with prior years when the outlook was stable,” S&P said.
S&P also added that federal relief aid provided significant support to the industry to help limit the negative financial hit to nonprofit U.S. healthcare organizations.
S&P said its stable outlook also reflects that about 85 percent of its rated organizations have a stable or positive outlook.
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