Doylestown Health received a significant credit rating upgrade from Standard & Poor’s this week, moving from CCC to B+, reflecting the nonprofit’s improved financial stability, writes Harold Brubaker for The Philadelphia Inquirer.   

The upgrade comes as Doylestown Health reduced its operating loss in fiscal 2024 and maintained compliance with loan agreements, strengthening its financial reserves. 

While the pending acquisition by the University of Pennsylvania Health System did not factor into the rating change, it contributed to S&P’s positive outlook on Doylestown’s future.  

The hospital reported $420 million in patient revenue for fiscal 2024, a notable increase from $380.5 million the previous year. 

Despite these improvements, S&P still considers Doylestown Health vulnerable, citing its modest balance sheet and limited financial cushion for unforeseen challenges. 

As of June 30, the health system had $86 million in unrestricted cash reserves, an increase driven by the sale of Pine Run retirement community, which netted $76 million. 

Pending regulatory approval, Doylestown Health is set to become the seventh hospital within the Penn Health System.  

Read more about Doylestown Health’s credit rating in The Philadelphia Inquirer.  

The Doylestown Health Cancer Institute