Elite College Credit Ratings Take a Hit From Struggling Hospital Systems
- Growing academic health-care systems squeeze schools’ finances
- Hospitals continue to struggle with higher costs for labor
Like other major universities, the University of Southern California has poured resources into expanding its health system. But it’s coming at a cost.
Moody’s Ratings downgraded USC a notch to Aa2 last month, citing underperformance from its growing health system. Similarly, the agency lowered its outlook for Emory University to negative in January, citing “current and expected future weak operating performance stemming largely from Emory Healthcare.”