Moody’s Investors Service affirmed its Baa1 rating on UC Health and revised the outlook to positive from stable, saying that the newly reorganized system has exhibited recent improvements in operations.
UC Health is the primary teaching hospital for the University of Cincinnati.
Formerly operated as Health Alliance of Greater Cincinnati, UC Health recently completed its first year as a new system. It is the only academic medical center in the area and enjoys strong patient demand and a manageable debt level, analysts said.
Despite its regional prominence, however, UC Health faces competition from other significant systems.
As the primary safety net hospital for the city of Cincinnati, it also carries a large Medicaid and self-pay patient load.
“The positive outlook reflects recent improvement in operating margins and unrestricted investments, as well as the system’s good progress in further defining and implementing strategies in its first year operating as a new system,” according to the rating agency.