Trinity Health affirmed at ‘AA-‘ rating, outlook stable, even as group reports large losses

Livonia, Mich.-based Trinity Health, one of the largest nonprofit hospital systems in the country, has had its ratings affirmed at “AA-,” both for bonds it holds and for the company’s overall rating, Fitch said Dec. 1. The outlook for the healthcare group, which holds about $6.9 billion of debt, remains stable.

Advertisement

The news comes after the group posted an overall loss of $1.4 billion for fiscal year 2022 compared with net income of $3.9 billion last year.

Trinity Health, which operates 88 hospitals and 135 other locations in 26 states, has faced a number of headwinds common in the sector such as high labor costs and inflationary pressures, Fitch acknowledged. But the group’s large size and market presence in key states disperses its risk, the ratings group said.

The long-term ratings also incorporate an expectation that Trinity Health will return to sustained stronger operating EBITDA margins, Fitch added.

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.

Download Whitepaper

The cost-saving opportunity most health systems overlook

Many hospitals and health systems scrutinize staffing, service lines, and payer contracts for savings. Fewer look at one of their largest assets: real estate.…

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.