Fitch Ratings has affirmed its 'A+' rating for the Dartmouth-Hitchcock health system (D-H) – the second consecutive year in which Fitch issued an A+ rating – and continued its recommendation that D-H’s financial outlook is “stable.”The rating is based on the approximately $69 million New Hampshire Health & Education Facilities Authority (Dartmouth-Hitchcock Obligated Group Issue) revenue bonds series 2009 and the approximately $75 million New Hampshire Health & Education Facilities Authority (Dartmouth-Hitchcock Obligated Group Issue) revenue bonds series 2010. Dartmouth Hitchcock obligated group has $535.6 million of total debt outstanding of which $391 million are unrated direct bank loans.
“This latest rating from Fitch is more great news for Dartmouth-Hitchcock. It is a testament to the work we are all doing to create a sustainable health system to improve the lives of the people and communities we serve, for generations to come,” said Dartmouth-Hitchcock CEO and President Dr. James N. Weinstein. “Fitch’s continuing affirmation of the budgetary actions we have taken is especially gratifying, since it shows their belief D-H is not only heading in the right direction, but leading other health systems across the nation in creating a system that truly is sustainable.”
“We remain committed to our overall strategy,” said D-H Chief Financial Officer Robin Kilfeather-Mackey. “We are in the midst of developing more aggressive improvement strategies for the remainder of the year, specifically focused on clinical performance, medical care management, workforce management, and retail specialty pharmacy expansion.”
Fitch highlighted D-H’s national leadership in value and quality, stating that “…the organization is focused on population health management and shifting payment models to be value based versus volume based.” Fitch also noted that “D-H has been growing its regional footprint and adding community hospitals ... Other collaborations are in progress to create a wider network that can leverage support services such as information technology, and management is interested in managing lives across NH, VT and ME.”
Fitch’s latest report follows a similar rating from Standard & Poor's Ratings Services, which issued an "A+" rating for Dartmouth-Hitchcock in 2014.