Prime Healthcare Foundation Receives Credit Rating Upgrade to A- With Stable Outlook

Third Consecutive Upgrade Reflects Strong Financial Position, Growth Strategy, and Clinical Excellence

The Prime Healthcare Foundation (PHF), one of the nation’s largest nonprofit health systems, has received a credit rating upgrade from Fitch Ratings to A- from BBB+ for both its Issuer Default Rating and Revenue Bond Credit, with a Stable Outlook. This marks the third credit upgrade by Fitch in the past four years, underscoring the Foundation’s strong financial stewardship, expanding footprint, and continued investment in clinical quality.

Fitch cited PHF’s “continued improvement in operating results” and a “very strong balance sheet” that significantly exceeded expectations. The upgraded rating reflects confidence in PHF’s fiscal management, growth trajectory, and mission-driven performance.

In its report, Fitch noted that fiscal year 2024 results were driven by “stronger volumes supported by improved throughput and reduced length of stay, along with enhanced capacity.” Expense control was also highlighted, with leadership achieving improved productivity, reduced contract labor, and enhanced retention efforts.

Fitch further considered PHF’s recent and upcoming acquisitions, including Central Maine Healthcare System (Central Maine Medical Center, Bridgton Hospital, and Rumford Hospital) and two Illinois hospitals acquired from Ascension (Saint Francis Hospital and St. Mary’s Hospital). The rating agency affirmed PHF’s management expectation that these acquisitions will be accretive to the overall organization.

“This is further recognition that the credit fundamentals of the Prime Healthcare Foundation are strong,” said Steve Aleman, Chief Financial Officer of Prime Healthcare Foundation. “With Fitch reaffirming our strong ‘aa’ financial profile assessment, the Foundation is well positioned to complete these strategic acquisitions and expand access to care—without needing to raise additional debt.”

“We are honored by the recognition of the Foundation’s financial strength and stability, and profoundly grateful to our physicians, nurses, caregivers, and leaders who make our mission possible each day,” said Kavitha Bhatia, MD, President and Chair of Prime Healthcare Foundation. “This upgrade reflects our commitment to excellence, innovation, and equity in care delivery. As a physician-led organization focused on health equity and clinical quality, we remain deeply dedicated to improving lives and uplifting communities by ensuring access to the highest standards of compassionate care.”

Together, Prime Healthcare and the Prime Healthcare Foundation operate 51 hospitals and over 360 outpatient locations across 14 states. The Foundation, a 501(c)(3) public charity, owns and operates 18 not-for-profit hospitals dedicated to delivering high-quality, accessible care in communities nationwide.

Prime is one of the most awarded health systems in the nation for quality and patient safety. In 2025 alone, Prime hospitals earned more than 150 quality recognitions from Healthgrades, and for the eighth consecutive year, Prime has more Healthgrades Patient Safety Excellence Award recipients than any other health system in the U.S.

Prime hospitals have also been named to the “100 Top Hospitals” list by Premier (formerly IBM Watson Health) 72 times, and the system has been recognized by The Joint Commission and National Quality Forum with the prestigious John M. Eisenberg Award for Patient Safety and Quality. The Lown Institute has also acknowledged Prime’s commitment to health equity, value, and clinical outcomes.

About Prime Healthcare and Prime Healthcare Foundation:

Prime Healthcare is an award-winning health system operating 51 hospitals and more than 360 outpatient locations in 14 states, providing over 2.5 million patient visits annually. It is one of the nation’s leading health systems, with nearly 57,000 employees and physicians. Eighteen of the Prime Healthcare hospitals are members of the Prime Healthcare Foundation, a 501(c)(3) not-for-profit public charity. Based in Ontario, California, Prime Healthcare is nationally recognized for award-winning quality care and has been named a 10 Top and 15 Top Health System by Truven Health Analytics. Its hospitals have been named among the nation’s “100 Top Hospitals” 72 times and is one of Healthgrades most awarded health systems in the nation for patient safety. To learn more, please visit primehealthcare.com.

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“We are honored by the recognition of the Foundation’s strength and stability and grateful to our physicians and caregivers,” said Kavitha Bhatia, MD, President. “This upgrade reflects our commitment to excellence, health equity and compassionate care.”