The hospitals and health systems receiving credit downgrades included:
• Baptist Health (Louisville, Ky.) — from A1 to A2 (Moody’s)
• Brazosport Regional Health System (Jackson, Texas) — from BBB- to BB+ (S&P)
• Catholic Health Initiatives (Englewood, Colo.) — from AA- to A+ (S&P)
• Crittenton Hospital Medical Center (Rochester, Mich.) — from Baa2 to Baa3 (Moody’s)
• MaineGeneral Health (Augusta) — from Baa3 to Ba1 (Moody’s)
• Robinson Memorial Hospital (Ravenna, Ohio) — from Baa3 to Ba2 (Moody’s)
• Trinity Health (Livonia, Mich.) — from AA to AA- (S&P)
• Tuomey Healthcare System (Sumter, S.C.) — from BB to CCC (S&P)
Notable among organizations receiving downgrades was Trinity Health and Tuomey. S&P downgraded Trinity Health as it grapples with its merger of Catholic Health East, a lower-rated credit. Often, when two large health systems merge or one acquires the other, the larger, higher-rated credit receives a temporary tick down as it absorbs the lower-rated credit.
S&P downgraded Tuomey as the embattled health system faces major false claims damages. Earlier this month, a federal judge ordered Tuomey to pay at least $237.4 million in penalties after a jury said the health system and its physicians participated in a kickback scheme. S&P said the two-notch downgrade reflects the huge fines, which could possible lead to large financial losses or even bankruptcy.
Four acute-care hospitals and health systems garnered a credit upgrade in the past month:
• Catholic Health East (Newtown Square, Pa.) — from A+ to AA- (S&P) and from A2 to Aa2 (Moody’s)
• Norman (Okla.) Regional Health System — from BB+ to BBB- (Fitch)
• St. Peter’s Health Partners/St. Peter’s Hospital (Albany, N.Y.) — from BBB+ to A- (Fitch) and from A- to A (S&P)
• Upper Valley Medical Center (Troy, Ohio) — from A- to A (S&P)
Four hospitals and health systems also had positive outlook changes, while five hospitals and health systems had negative outlook changes.
Related Articles on Hospital Credit Ratings:
Moody’s: Health Insurance Exchange Uncertainties Hurt Nonprofit Hospitals
Massive Stark Law Penalties Lead to Credit Downgrade for Tuomey
5 Hospitals Receive Credit Downgrades in Past Month
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