Salem Health rating affirmed at ‘AA-,’ outlook stable

Salem (Ore.) Health has had its “AA-” rating affirmed on bonds the health system owns as well as for its overall rating, Fitch said Jan. 11. The outlook for the system is stable.

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The affirmation of the rating reflects a “very strong” financial profile and a leading market share position, Fitch said. The flagship Salem Hospital, a 567-bed facility, is the only hospital in the city of Salem, approximately 45 miles south of Portland.

In fiscal 2022, Salem Health reported revenues of over $1 billion and reported an almost break-even performance for the year, with losses from operations totaling only $3.1 million.

With the completion of a new inpatient tower in the summer of 2022, Salem is expected to have limited capital expenditure over the medium term, Fitch said.

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