Credit rating downgrades for several health systems were tied to capital expenditures and cash flow issues in recent months.
Becker’s compiled a list of the five health system credit rating downgrades that occurred since July. Tower Health topped the list.
1. Tower Health (West Reading, Pa.) — lowered in September from “B+” to “CCC+” (Fitch Ratings)
“The three-notch downgrade to ‘CCC+’ reflects Tower’s ongoing significant financial losses in fiscal 2022 … with an operating loss of $195 million, or a negative 1.8% operating EBITDA margin,” Fitch said. Read more.
