ONTARIO, Calif.--(BUSINESS WIRE)--Fitch Ratings has affirmed Prime Healthcare Foundation's Issuer Default Rating (IDR) at 'BBB' and maintained a positive outlook for its 14 not-for-profit hospitals in six states.
Fitch Ratings noted that the affirmation of the 'BBB' and maintenance of the Positive Outlook reflects Prime Healthcare Foundation's (PHF) very solid liquidity and moderate leverage. The Rating Action Commentary went on to reference the positive view of First Quarter 2023 performance trends that reflect decreased costs and increased higher Net Patient Revenue driven by increased Outpatient Surgery volume and supporting forecasts that reflect the PHF EBIDA margins returning to high single digits across its hospitals.
"This rating action is a result of a thorough evaluation of Prime Healthcare Foundation's operations, financial position, and local market conditions. The conclusion from Fitch Ratings is based on our performance during challenging times within the healthcare industry," said Steve Aleman, Prime Healthcare Chief Financial Officer. "The positive outlook reflects the dedicated efforts to grow top-line revenue, implement aggressive expense management controls and improve operational and financial performance to better serve the communities we are proud to be part of."
"This positive rating outlook reflects confidence in the Foundation's financial stability, operational efficiency and ongoing success as we manage costs, while increasing volume and revenue," said Kavitha Bhatia, MD, president and chair of Prime Healthcare Foundation. "We are grateful to the teams that make our commitment to communities possible every day as we provide clinically excellent, compassionate care and expand access for all."
Prime Healthcare and Prime Healthcare Foundation comprise 45 hospitals and more than 300 outpatient locations in 14 states. Prime is one of the nation's premier health systems recognized for its quality and patient safety initiatives and performance. This year, Prime's hospitals received more than 250 quality awards from Healthgrades, and Prime has more Patient Safety Excellence Award recipients from Healthgrades than any other health system for seven consecutive years. Its hospitals have also been recognized among the "100 Top Hospitals" in the nation 66 times by Fortune/Merative (formerly IBM Watson Health). Eighty-five percent of Prime's hospitals earned an "A" or "B" from The Leapfrog Group this rating season, well above the national average. 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.
About Prime Healthcare and Prime Healthcare Foundation: Prime Healthcare and Prime Healthcare Foundation comprise an award-winning health system operating 45 hospitals and more than 300 outpatient locations in 14 states, providing over 2.6 million patient visits annually. Fourteen of the Prime Healthcare hospitals are members of the Prime Healthcare Foundation, a 501(c)(3) not-for-profit public charity. Prime is one of the nation's leading health systems with nearly 50,000 employees and physicians dedicated to providing the highest quality healthcare. 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. Its hospitals have been named among the nation's "100 Top Hospitals" 66 times and have received more Patient Safety Excellence Awards from Healthgrades than any other health system in the past seven years. To learn more, please visit www.primehealthcare.com.
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