Summary: Huron Regional Medical Center, South Dakota; Hospital

S&P Global Ratings issuer credit rating (ICR) on Huron Regional Medical Center (Huron), S.D., is 'A-'. The outlook is stable. The ICR applies to Huron's general creditworthiness and is not specific to any bond issuance. The rating reflects our view of Huron's solid balance sheet with light debt and ample unrestricted reserves, which have provided a cushion through its recent operating weakness due to the COVID-19 pandemic. The rating also reflects Huron's small service area with modest economic fundamentals and very limited population base, which exposes the hospital to physician recruitment and retention challenges. Like most small hospitals, medical staff is limited in size and depth, with a high concentration of admissions generated by the top 10 admitting physicians, which

...The rating reflects our view of Huron's solid balance sheet with light debt and ample unrestricted reserves, which have provided a cushion through its recent operating weakness due to the COVID-19 pandemic. The rating also reflects Huron's small service area with modest economic fundamentals and very limited population base, which exposes the hospital to physician recruitment and retention challenges. Like most small hospitals, medical staff is limited in size and depth, with a high concentration of admissions generated by the top 10 admitting physicians, which can lead to risks associated with physician turnover. Although common for similarly sized hospitals, we view such admissions concentration as a potential weakness to Huron's overall enterprise profile as it can lead to operational variability. Financial performance during the last two audited years (fiscals 2021 and 2022) has been positive, and though operations through the eight-month interim period ending Feb. 28, 2023 have been...

Summary