Summary: St. Joseph's Health Inc., New Jersey; Hospital; System

S&P Global Ratings' long-term rating on  New Jersey Health Care Facilities Financing Authority, N.J.'s tax-exempt series 2016, 2017, and 2022 bonds issued for St. Joseph's Health Inc. (SJH), is 'BBB-'. The outlook is stable. The bonds are secured by a gross revenue pledge and mortgage from the obligated group. The rating reflects our view of the organization's stable and leading market share as a safety net provider in the system's competitive service area. SJH has benefitted from its favorable relationship with Hackensack Meridian Health, which provides a depth of experience and resources. As a safety net provider, SJH's financial profile relies on supplemental revenue sources, reflecting its skewed payer mix towards government payers. Though there has been turnover at the

...The rating reflects our view of the organization's stable and leading market share as a safety net provider in the system's competitive service area. SJH has benefitted from its favorable relationship with Hackensack Meridian Health, which provides a depth of experience and resources. As a safety net provider, SJH's financial profile relies on supplemental revenue sources, reflecting its skewed payer mix towards government payers. Though there has been turnover at the CEO position, the system's management team is well-tenured and experienced. Management is currently developing a new strategic plan, which is expected to be rolled out by the fourth quarter of fiscal 2024. The rating additionally incorporates SJH's trend of thin, albeit positive, operating margins during the last four fiscal years. The rating further reflects SJH's elevated leverage and weaker balance sheet compared to its higher-rated peers. Operating results in fiscal 2023 continued the trend of thin, positive margins, though...

Summary