Update on Our Organization’s Finances

This week, both Moody's and Standard & Poor's (S&P) released their yearly bond rating reports on our organization. Both agencies’ ratings remained unchanged from the year before.

• S&P affirmed Carilion’s AA-/Stable rating.
• Moody’s affirmed our Aa3/Stable rating

In their analysis, S&P wrote: “The stable outlook is based on our view that Carilion is addressing the recent operating stress through performance improvement initiatives and will likely generate breakeven or slightly positive operations by the end of fiscal 2024, while maintaining sufficient liquidity and financial flexibility for the rating. Furthermore, the Crystal Spring Tower project is progressing as expected and should provide much needed capacity and increased revenue once completed in 2025.” Moody’s commentary followed the same line of thinking.

Hospitals and health systems across the country experienced financial challenges following the COVID-19 pandemic, including lower patient volumes, high labor costs, and the rising cost of supplies.

Our goal is to return to a positive operating margin by the end of FY24.

“The latest bond ratings show that Carilion remains strong as a healthcare system and as the largest employer in our region,” said Don Halliwill, Carilion Clinic’s Chief Financial Officer. “We are committed to our communities, and we are doing significant work to bounce back from the challenges we faced during the past few years.”