Prime Healthcare Services, Inc. Receives Universal Credit Rating Upgrades from Fitch, Moody’s and S&P

Key Highlights

• Fitch Ratings upgraded Prime Healthcare Services, Inc.’s senior secured notes to ‘B+’
• Moody’s Investors Service upgraded Prime’s corporate credit rating to B2
• S&P Global Ratings affirmed Prime’s rating and raised the outlook to Positive
• Upgrades driven by strategic and operational initiatives, improved EBITDA and margins, reduced labor costs, successful hospital integrations, and geographic diversification
• Recent expansion into the Chicago market with six Illinois hospitals from Ascension Health Alliance
• Follows April 2025 A- upgrade for Prime Healthcare Foundation’s not-for-profit hospitals, the third in four years

ONTARIO, Calif.--(BUSINESS WIRE)--Prime Healthcare announced that Fitch Ratings has upgraded Prime Healthcare Services, Inc.’s (PHSI) senior secured notes to ‘B+,’ and Moody’s upgraded the company’s corporate credit rating to B2. S&P Global Ratings affirmed the credit rating and raised the outlook to positive.

Prime Healthcare is one of the largest health systems in the United States, operating 51 hospitals in 14 states and more than 360 outpatient locations, with over 57,000 staff and affiliated physicians dedicated to providing the highest quality, value-based healthcare. Eighteen of Prime Healthcare’s hospitals are members of the Prime Healthcare Foundation, a 501(c)(3) not-for-profit public charity.

The rating agencies cited Prime’s improved EBITDA and margins, reduced reliance on temporary labor, disciplined expense management, and successful integration of underperforming hospitals. Additional drivers included geographic diversification and enhanced scale from the March 2025 acquisition of six Illinois hospitals from Ascension Health Alliance.

Fitch noted “performance improvements at the Chicago hospitals, positive trends in the base business, and leverage reduction” as factors supporting the upgrade. Moody’s highlighted “material improvement of the company's EBITDA and EBITDA margin in recent quarters” and Prime’s “track record of turning around distressed hospital assets as Prime Healthcare slashed its temporary clinical labor expenses, reduced leasing costs, and optimized underperforming hospital operations.” The agency further noted that the rating upgrade was supported by Prime Healthcare's scale and track record of turning around underperforming or distressed hospital assets, and that the company’s geographic concentrations will decrease materially as it integrates the six Illinois hospitals acquired from Ascension Health Alliance on March 1, 2025.

S&P pointed to stronger patient admissions, significant decreases in contract labor costs, and benefit from increased scale from the acquisition, which will help deliver stronger operating results, incremental EBITDA growth, and reduced adjusted leverage. Further rationale for raising the outlook to positive included stronger patient admissions and “the increased likelihood of an upgrade if the company successfully integrates the Ascension hospitals and achieves base case expectations.”

“Prime’s recent upgrades from all three major rating agencies are a direct reflection of our strong financial performance, operational discipline, and strategic growth,” said Steve Aleman, Prime Healthcare Chief Financial Officer. “Prime’s continued growth is matched by its steadfast focus on delivering exceptional care and advancing clinical outcomes and our expansion into the Chicago market and continued focus on delivering high-quality care have positioned us for sustainable, long-term success.”

These actions follow Fitch Ratings’ April 2025 upgrade of the Prime Healthcare Foundation's Issuer Rating and Revenue Bond Credit rating to A-, the third upgrade in four years for its not-for-profit hospitals.

Prime’s strong financial performance aligns with its national recognition for clinical excellence, health equity, and value. In the 2025 Lown Institute Hospitals Index, 46 Prime hospitals earned “A” grades for social responsibility, ranking among the nation’s leaders in health equity, patient outcomes, and value of care. Among more than 3,500 hospitals evaluated, Prime hospitals stood out for their exceptional performance in measures that reflect a hospital’s true impact on the communities it serves.

“Social responsibility, clinical excellence and health equity are central to our unique mission of saving and strengthening hospitals across the nation,” said Sunny Bhatia, MD, President and Corporate Chief Medical Officer of Prime Healthcare. “We are honored to serve our communities and grateful to our caregivers for their compassion, excellence, and integrity in every patient encounter.”

About Prime Healthcare and Prime Healthcare Foundation:

Prime Healthcare is an award-winning health system operating 51 hospitals and more than 360 outpatient locations in 14 states, providing over 2.5 million patient visits annually. It is one of the nation's leading health systems, with nearly 57,000 employees and physicians. Eighteen of the Prime Healthcare hospitals are members of the Prime Healthcare Foundation, a 501(c)(3) not-for-profit public charity. Based in Ontario, California, Prime Healthcare is nationally recognized for award-winning quality care and has been named a 10 Top and 15 Top Health System by Truven Health Analytics. Its hospitals have been named among the nation's "100 Top Hospitals" 72 times and have received more Patient Safety Excellence Awards from Healthgrades than any other health system in the past eight years.

To learn more, please visit primehealthcare.com.

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