Fitch Ratings has affirmed the 'A+' long-term rating on the series 2020A, 2020B, 2015A and 2016A bonds issued on behalf of Renown Health by Public Finance Authority for Renown’s $469 million Master Facilities Construction Project which includes hospital campus improvements and new health care facilities across northern Nevada to meet the growing community need over the next three years.
Given significant consumer demand for Renown providers and services, a master facilities planning process was undertaken to ensure that Renown has adequate bed and procedure capacity, spaces to accommodate new technology and services to meet the needs of a growing patient base and community.
Fitch listed the following reasons for the A+ rating:
Renown remains the single largest provider of high-end acute care services and is maintaining a leading market position, with approximately two thirds of all patients in northern Nevada seeking care at Renown.
Renown has strong balance sheet metrics, which have seen a decline in 2022 partly due to operations, but also due to an equities market contraction.
Fitch believes that Renown has detailed operational improvement plans, with quick hit expensive savings items along with a medium-term focus to recruit and retain staff (and reduce agency/traveler expenses) and also longer-term goals to accept more risk to stabilize their revenue stream, such that Renown will return to operating EBITDA margins in approximately the 7% range.
The macro headwinds of labor pressures and high inflation were known heading into 2022 but “have been more pronounced than expected,” the ratings agency wrote in a midyear outlook report released Tuesday.
“While severe volume disruption to operations appears to be waning, elevated expense pressure remains pronounced,” Kevin Holloran, senior director at Fitch Ratings, said in a release accompanying the outlook report. “Even if macro inflation cools, labor expenses may be reset at a permanently higher level for the rest of 2022 and likely well beyond.”
Fitch said it’s expecting “a more manageable endemic period” for hospitals balancing COVID inpatient and welcoming the return of surgical and specialty care volumes that “have returned to near pre-COVID-19 levels in many markets.” On the other hand, uncertainty abounds during a pandemic that has shown its ability to resurge time and again, the agency wrote.
About Renown Health
Renown Health is the region’s largest, locally governed, not-for-profit integrated healthcare network serving Nevada, Lake Tahoe and northeast California. With a diverse workforce of more than 7,000 employees, Renown has fostered a longstanding culture of excellence, determination and innovation. The organization comprises a trauma center, two acute care hospitals, a children’s hospital, a rehabilitation hospital, a medical group and urgent care network, and the locally owned not-for-profit insurance company, Hometown Health. Renown is currently enrolling participants in the world’s largest community-based genetic population health study, the Healthy Nevada Project®. For more information, visit renown.org.
Renown Health Promotes Jenny Juchtzer to Vice President of Payer Contracting
Renown Health announced the promotion of Jenny Juchtzer to Vice President of Payer Contracting, recognizing her longstanding leadership, deep institutional knowledge, and significant contributions to the organization’s financial and strategic success.
Renown Health Expands Access to Advanced Deep Brain Stimulation Care
Renown Health is expanding access to advanced neurological care with the availability of Deep Brain Stimulation (DBS) surgery at the Renown Institute for Neurosciences, bringing one of the most sophisticated treatments for movement disorders, such as Parkinson's disease, closer to home for patients across northern Nevada.
“The availability of Deep Brain Stimulation at Renown represents a significant step forward in the level of neurological care we can provide locally,” said Chris Nicholas, MHA, FACHE, CEO, Renown Regional Medical Center and COO, Renown Health. “DBS is a highly specialized therapy that requires advanced technology, surgical expertise and a coordinated care team. By bringing this treatment closer to home, we’re improving access to essential and advanced care options while helping patients achieve better outcomes and quality of life.”
DBS is used to help manage symptoms of Parkinson’s disease, essential tremor and dystonia; a neurological movement disorder causing involuntary, sustained or repetitive muscle contractions, leading to twisting movements, abnormal postures and sometimes pain, affecting one muscle or the whole body, when medications alone are no longer effective. DBS uses targeted electrical impulses delivered to specific areas of the brain to help regulate abnormal neurological signals. For many patients with movement disorders, DBS can significantly improve symptoms, restore independence and enhance quality of life.
This milestone was made possible in part through the generosity of eight local foundations and individual donors, coordinated by the Renown Health Foundation. Contributions ranged from $5,000 to $333,000, reflecting a shared commitment to advancing specialized care in the region.
“Philanthropic support played a critical role in making Deep Brain Stimulation available at Renown. Investments from local foundations and individual donors helped fund the advanced technology and infrastructure required to launch this highly specialized program,” said Gregory Walaitis, MEd, Chief Development Officer at Renown Health. “Their generosity is directly expanding access to leading-edge neurological care, allowing patients in our region to receive complex, life-changing treatment close to home and reinforcing Renown’s commitment to innovation and excellence in patient care.”
Dr. Jason Knight Joins Renown Regional Medical Center As Chief Medical Officer
“We are truly excited and honored to welcome Dr. Knight to Renown,” said Chris Nicholas, MHA, FACHE, CEO of Renown Regional Medical Center. “His experience leading clinical and operational teams, driving quality improvement, and fostering a culture of safety across an integrated academic health system will be critical as we begin our journey to becoming a High Reliability Organization. Dr. Knight leads with strong multidisciplinary collaboration, partnerships with nursing and data-informed decision making. He is a trusted and visionary physician leader whose commitment to excellence will continue to elevate care for the patients and families we serve.”
