Prime Healthcare Services, Inc. Receives Double Upgrade of Credit and Outlook from Fitch Ratings
2024年5月16日 - 3:20AM
ビジネスワイヤ(英語)
Upgrade reflects strength of strategic and
operational initiatives, decreased leverage and successful
repurchase of hospital assets
Prime Healthcare today announces that Fitch Ratings has upgraded
Prime Healthcare Services, Inc.’s (PHSI) senior secured notes to
“B+” and upgraded the outlook to Stable.
Prime Healthcare Services includes 30 hospitals, and together
with the not-for-profit Prime Healthcare Foundation, the health
system includes 44 hospitals and more than 300 outpatient locations
in 14 states, serving over 2.6 million patients annually. Prime is
one of the nation's leading health systems recognized for its
quality, patient safety, and performance.
Fitch noted in their ratings action that the upgrade reflected
the improved collateralization stemming from PHSI’s repurchase of
17 previously leased hospitals over the past two years. Fitch
referenced the material improvement in PHSI’s rent-adjusted
leverage and strategic initiatives and operational improvements
that further improve the forecast in 2024.
“Fitch's upgrade of both the Credit and the Outlook is evidence
of Prime’s commitment to operational excellence and strategic
financial management, which has positioned us for continued growth
and stability,” said Steve Aleman, Prime Healthcare's Chief
Financial Officer. "We are grateful for the ongoing support of our
stakeholders as we navigate these dynamic market conditions."
Fitch Ratings underscored PHSI’s efforts to manage risks
effectively and maintain its competitive position in the healthcare
industry.
PHSI has been actively managing labor market disruption, which
was exacerbated by the pandemic in 2022. Through more efficient use
of temporary staff, and the recruitment and retention of full-time
labor, PHSI successfully rebounded its EBITDAR margins, with
further improvements expected throughout 2024. Fitch Ratings also
cited anticipated increased revenue from state Medicaid
supplemental payment programs and benefits from an industry-wide
upturn in volume growth.
In addition to the upgrade of both the Credit and the Outlook,
Fitch also affirmed the Long-Term Issuer Default Rating (IDR) at
‘B” and assigned a new “BB” instrument/recovery rating to PHSI's
latest senior secured ABL revolver.
The ratings action represents further recognition of Prime
Healthcare's material improvement in operational and financial
performance. In April 2024, Fitch Ratings upgraded Prime Healthcare
Foundation's Issuer Rating and the Revenue Bond Credit rating to
BBB+ while rating the Outlook as Stable for its 14 not-for-profit
hospitals in six states. The credit rating upgrade by Fitch was the
second credit rating upgrade given by the rating agency to PHF in
the last three years.
Prime hospitals are recognized for their clinical excellence,
health equity and value. This year, Prime's hospitals received more
than 200 clinical quality awards from Healthgrades, and Prime has
more Patient Safety Excellence Award recipients from Healthgrades
than any other health system for eight consecutive years. Its
hospitals have also been recognized among the "100 Top
Hospitals" in the nation 69 times by Fortune/PINC AI (formerly
IBM Watson Health). In addition, Prime has been recognized by The
Joint Commission and National Quality Forum with the prestigious
John M. Eisenberg Patient Safety and Quality Award. Prime's
mission is to provide compassionate, quality care for all and
ensure access for which it has been recognized by the Lown
Institute for health equity, value, and clinical excellence.
About Prime Healthcare and Prime Healthcare
Foundation
Prime Healthcare is an award-winning health system operating 44
hospitals and more than 300 outpatient locations in 14 states,
providing over 2.6 million patient visits annually. It is one of
the nation's leading health systems, with nearly 45,000 employees
and physicians dedicated to providing the highest quality
healthcare. Fourteen of the Prime Healthcare hospitals are members
of the Prime Healthcare Foundation, a not-for-profit public
charity. Based in Ontario, California, Prime Healthcare is
nationally recognized for award-winning quality care and has been
named a Top 10 and Top 15 Health System by IBM Watson Health. To
learn more, please visit www.primehealthcare.com.
Find us on:
LinkedIn: linkedin.com/company/prime-healthcare/ Facebook:
facebook.com/primehealthcare/ Instagram:
instagram.com/prime_healthcare/
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Scott Barboza sbarboza1@primehealthcare.com (909) 750-8665