After several difficult years of COVID-19 pandemic response, staffing shortages and financial challenges, St. Charles Health System’s operating performance turnaround has been recognized positively by two large, influential credit-rating agencies.
S&P Global Ratings revised the organization’s outlook to stable from negative and affirmed its ‘A’ long-term rating assigned to bonds the health system issued in 2016 and 2020 under the Deschutes County Hospital Facilities Authority.
“The outlook revision from negative reflects our view of St. Charles’ meaningful rebound in operating performance and solid days’ cash on hand that have allowed it to withstand operating pressure and recent industry headwinds,” according to S&P Global Ratings.
Moody’s Investors Service revised St. Charles’ outlook to stable from negative and affirmed its ‘A2’ revenue bond rating to reflect the health system’s successful execution of financial turnaround plans.
“(St. Charles’) favorable credit profile is supported by (its) strong market position as the dominant system in central Oregon, its comprehensive array of strong clinical offerings, and its favorable location in a quickly growing, desirable region, which will continue to fuel strong revenue growth,” according to Moody’s.
As a nonprofit health care organization, St. Charles issues bonds to reinvest in its facilities and infrastructure to continue providing high quality, critical care to Central Oregon communities. The affirmed rating and improved outlook strengthen the health system’s capacity to borrow additional capital dollars in the future.
"We have been working incredibly hard for the past 18 months to stabilize the health system and it is nice that others recognize our improvement,” said St. Charles President and CEO Dr. Steve Gordon. “We have stabilized our workforce, stabilized our finances and are now able to lay the groundwork to better meet our region’s growing needs for essential services now and in the future.”
About St. Charles Health System
St. Charles Health System, Inc., headquartered in Bend, Ore., owns and operates St. Charles Bend, Madras, Prineville and Redmond. It also owns family care clinics in Bend, Madras, Prineville, Redmond, La Pine and Sisters. St. Charles is a private, nonprofit Oregon corporation and is the largest employer in Central Oregon with more than 4,500 caregivers. In addition, there are more than 350 active medical staff members and nearly 200 visiting medical staff members who partner with the health system to provide a wide range of care and service to our communities.
