FOR IMMEDIATE RELEASE
Contact: John Porter
207-329-8594 / [email protected]
Portland, Maine 鈥� S&P Global Ratings and Moody鈥檚 Investors Service each endorsed AOA体育平台 with strong credit ratings last week despite the toll that COVID-19 has taken on the healthcare system in 2020.
On Wednesday, S&P reaffirmed its A+ rating for existing bonds as well as for the organization as an issuer of new bonds. On Friday, Moody鈥檚 offered a similar opinion of AOA体育平台鈥檚 credit worthiness, reaffirming its rating of A1-stable. Because of the impact of COVID-19 on the hospital system鈥檚 finances, S&P did change its outlook rating from 鈥減ositive鈥� to 鈥渟table,鈥� noting that 鈥渞evenue pressure and market volatility stemming from COVID-19 has dampened financial performance鈥� in the current fiscal year. This revised outlook, however, is stronger than S&P鈥檚 overall 鈥渘egative鈥� outlook for the entire healthcare industry.
鈥淥bviously, the last four months have been challenging,鈥� said Al Swallow, AOA体育平台鈥檚 Chief Financial Officer. 鈥淭hese reports affirm our belief, however, that we remain well positioned to support our patients, care team members and our communities in the years ahead.鈥�
Earlier this year AOA体育平台, which consists of nine local health systems in Maine and Carroll County, N.H., said that it expected lost revenues related to the coronavirus pandemic to be around $400 million for the 2020 calendar year, assuming that there is not a dramatic increase in infections in its service area.
AOA体育平台 has received approximately $110 million from the government in pandemic relief funds and hopes it is eligible for about $40 million more, but that still leaves it with expected COVID-19 related revenue losses of approximately $250 million for the year.
Fortunately, as noted in the credit rating reports, AOA体育平台 entered the crises in strong financial shape, and it is expected that, once the pandemic has passed, the system will return to financial health. Already, AOA体育平台 has started to bring back services that were idled in March as part of its pandemic planning, putting in place extensive safety protocols on behalf of its care team and patients.
Because of its financial strength, AOA体育平台 has committed to maintaining the jobs and pay of its employees through the current fiscal year, even for those employees who had been idled due to the earlier cancellation of elective and non-urgent procedures. Going forward, AOA体育平台 has said it will continue to prioritize its care team members as it works through the crisis.
Still, AOA体育平台 expects that it will have to manage growth in its workforce and scrutinize future capital investments carefully to make up for the financial impact of the pandemic. The healthcare system is hoping the federal government steps forward with additional relief funds to take the pressure off its local hospitals, especially those in rural communities where delivering care is already financially challenging.
In their reports, the rating agencies singled out AOA体育平台鈥檚 decision two years ago to consolidate its member hospital organizations in Maine under a single Board, management and financial structure. The agencies noted that this unification of its members has enabled the system to work through the COVID-19 crisis and remain strong and stable. S&P also noted that the merger earlier this year of Mid Coast-Parkview Health in Brunswick into AOA体育平台 added to the system鈥檚 strength.
鈥淥ur vision is 鈥淲orking together so our communities are the healthiest in America,鈥� said Swallow. 鈥淭hat has never been more important for the 1.1 million people we support in our local communities. Together, if all of us do our part to fight this virus and support one another, we are confident that our future remains a bright one.鈥�
###
About AOA体育平台:
AOA体育平台 is a not-for-profit integrated health system consisting of nine local hospital systems, a comprehensive behavioral healthcare network, diagnostic services, home health agencies, and more than 1,700 employed and independent physicians working together through an Accountable Care Organization. With close to 22,000 employees, AOA体育平台 is the largest health system in northern New England and provides preventive care, diagnosis and treatment to 1.1 million residents in Maine and New Hampshire. It includes Franklin Memorial Hospital/Franklin Community Health Network in Farmington, LincolnHealth in Damariscotta and Boothbay Harbor, Maine Behavioral Healthcare in South Portland, AOA体育平台 Care at Home in Saco, Maine Medical Center in Portland, Memorial Hospital in North Conway, N.H., Mid Coast-Parkview Health in Brunswick, NorDx in Scarborough, Pen Bay Medical Center and Waldo County Hospital in Rockport and Belfast, Southern Maine Health Care in Biddeford and Sanford, Spring Harbor Hospital in Westbrook and Stephens Memorial Hospital/Western Maine Health Care in Norway. AOA体育平台 Affiliates include Maine General Health in Augusta and Waterville, New England Rehabilitation Hospital in Portland and St. Mary's Regional Medical Center in Lewiston. It is also a significant stakeholder in the AOA体育平台 Accountable Care Organization in Portland.