But the revision by Moody's late last week came as
Fairview officials said in a statement the split decision "matches the different outlooks that rating agencies have on the nonprofit health care marketplace in general."
With more than
Nonprofit health systems, in general, are under financial stress due to rising labor costs and the need to invest in technology, Moody's said in a report in the spring. In addition, nonprofit health systems are struggling on the revenue side as more patients have coverage through government insurance programs that typically pay less than health plans for commercial customers.
In a report released Monday, Moody's said that a proposed new affiliation agreement with the
But it comes with a cost, Moody's noted. The proposal calls for an increase in Fairview support for the medical school and research, from
Fairview said the merger with HealthEast is "on track and generating the expected outcomes."
Moody's also said the expansion in
But Fairview said: "We do not expect a short-term impact."
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