Northern Light Health's credit rating has dropped to BB-. That's three notches lower than its rating in October. S&P Global says the downgrade is due to persistent operating losses.
The agency says that Northern Light Health is in a solid business position as a key provider of rural health care, anchored by Eastern Maine Medical Center in Bangor. But, according to S&P, staffing challenges, patient stays, and heightened losses at certain hospitals — including Eastern Maine Med — have constrained earnings.
Northern Light Health spokesperson Suzanne Spruce says the downgraded rating is disappointing, but it's based on performance in prior years. She says Northern Light is making changes to improve its financial situation, including outsourcing some business operations to cut costs.
The Maine Hospital Association has said that hospitals across the state have faced unprecedented financial challenges since the pandemic. Citing the need to sustain its future, Central Maine Healthcare announced plans in January to be acquired by California-based Prime Healthcare Foundation
