TOLEDO, Ohio — Moody’s Investors Service has announced that it has upgraded ProMedica's bond rating from "negative" to "stable."
The firm said the change reflects the sale of ProMedica's hospice and home-care divisions, as well as the elimination of bank debt. The news release from Moody's indicates ProMedica still has about $1.8 billion of debt.
The upgraded-rating announcement comes as the regional health-care company has faced immense financial difficulty for more than a year. ProMedica has gotten smaller as it refocuses its core business as a regional hospital and health-care company.
ProMedica made a deal to sell its home hospice and healthcare business to Gentiva for $700 million. Also this year, more than 250 people were laid off with the divestiture of 147 skilled nursing facilities that were racking up hundreds of millions in losses.
ProMedica responded to the bond-rating upgrade with a statement from Tausha Moore, associate vice president, strategic communications:
“Like many other health systems, ProMedica has been working diligently to navigate the historic financial challenges the industry has been facing since the pandemic. This year, ProMedica has taken bold steps to create a more stable and sustainable organization, including transitioning some business lines outside our core services to new owners. We also have taken a thoughtful and strategic approach to creating efficiency in our core operations while maintaining an unwavering commitment to clinical excellence. As a result, ProMedica has experienced some improvement in its financial situation. We are pleased that two leading rating agencies have recently recognized our efforts by upgrading ProMedica’s outlook to ‘stable.’
While we have made some strides toward financial recovery this year, rising expenses continue to mount pressure on the industry— especially when those expenses outpace the reimbursements we receive from insurance companies and other payers. As we move into 2024, ProMedica will continue prioritizing operational efficiency to help ensure financial stability and optimally position the organization for the future.”
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