- Shrinking liquidity and reimbursements have squeezed Wise
- Unrestricted cash fell 32% to $69 million from end of 2022
Fitch Ratings downgraded Wise Health System, citing shrinking liquidity and high doctor turnover among the pressures on the Texas operator.
The hospital system was lowered three notches to B+ from BB+ and placed on a negative rating watch by Fitch, according to a Friday report. Wise Health System’s balance sheet is “approaching tenuous and offering a limited margin of safety,” Fitch wrote. Its unrestricted cash declined to $69 million as of June 30 from $101 million at the end of last year.
Hospitals are coping with higher expenses for labor and supplies, and smaller and more rural systems like Wise are particularly squeezed.
Bloomberg Markets
By Lauren Coleman-Lochner
October 2, 2023 at 8:30 AM PDT