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 Stands with Hospitals and Health Systems Nationwide on #havhope Friday
Renown Health, the region’s largest, not-for-profit academic health system serving Nevada, Lake Tahoe and northeast California, is joining healthcare networks across the country by supporting the American Hospital Association’s violence prevention initiative, Hospitals Against Violence (HAV). Today, team members at Renown are participating in #HAVhope Friday, an annual day of awareness focused on enhancing public awareness of workplace violence and addressing all types of violence within our health system and community.
Saving Lives Through Awareness: Renown Health Recognizes National Fentanyl Awareness Day
Medication-assisted treatment program at Renown’s Stacie Mathewson Institute offers support for this in recovery from addiction
The Stacie Mathewson Behavioral Health & Addiction Institute at Renown Health stands with northern Nevada communities on Fentanyl Awareness Day, recognized nationwide on April 29 annually.
Fentanyl is a synthetic opioid that is up to 50 times more potent than heroin and 100 times more potent than morphine. Unlike medical fentanyl, illegally made fentanyl is often made in unsanitary conditions, not carefully dosed or blended and laced in other street drugs, including pills, powders and crystals.
Renown encourages all community members visit FentanylAwarenessDay.org for resources tailored for many different groups, including families, schools, companies and more.
“Opioid addiction is an epidemic nationwide, and Nevada is no exception – and with dangerous synthetic opioids like fentanyl becoming easier to access, it’s our responsibility as healthcare professionals to take action,” said Takesha Cooper, MD, Chair of Psychiatry and Behavioral Sciences for Renown Health and the University of Nevada, Reno School of Medicine (UNR Med). “It’s important for our community to know what they can do to help themselves, or someone they love, who may be struggling with fentanyl addiction. The Stacie Mathewson Behavioral Health & Addiction Institute is here to help those affected by fentanyl.”
Termination of HHS ARPA Funds Leads to Suspension of Services at Renown Crisis Center
After thoughtful consideration and a careful review of current circumstances, services have been suspended at the Renown Crisis Care Center. The Center, which provided short-term, 23-hour behavioral health crisis intervention services was funded by American Rescue Plan Act (ARPA) grant that was recently terminated by Health & Human Services (HHS). Renown leaders are working with representatives on the federal, state, and local level on alternative funding sources with the goal of resuming operations when a sustainable form of funding is identified.
