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JOHNSON CITY — Ballad Health announced Monday that major national ratings agencies have affirmed its “A” credit ratings with a “Stable” outlook, citing strong financial management, operational efficiencies, and improvements in access and quality of care.

Despite industry-wide challenges—including labor shortages, rising supply and drug costs, and insurance payment delays—S&P Global Ratings and Fitch Ratings credited Ballad Health’s experienced management team and strategic initiatives for its continued stability.

“In our opinion, Ballad has an experienced management team that has responded well to industry challenges and taken a proactive approach to the merger,” S&P Global Ratings stated. The agency highlighted Ballad Health’s efforts to consolidate services, improve quality, and maintain access across the region.

Fitch Ratings noted Ballad Health’s progress in stabilizing its workforce, citing reductions in contract labor costs from a peak of nearly $15 million per month in April 2022 to approximately $4 million. Investments in wages, benefits, and workforce development have contributed to lower nursing turnover, which has dropped to 13.8%—the lowest in the history of Ballad Health and its predecessor systems.

Ballad Health Chairman and CEO Alan Levine praised the health system’s performance.

“The performance of Ballad Health compared to its peers on quality, access, and financial management is strong, and I am proud of the team members and physicians who work hard every day to deliver these results,” Levine said.

In addition to workforce investments, Ballad Health has expanded healthcare access across the Appalachian Highlands, including launching the Quillen Center for Urological Services in Abingdon, Va., and expanding pediatric and emergency services. The health system has also invested in robotic-assisted surgery, behavioral health services, and a $100 million radiation oncology initiative.

Ballad Health hospitals have earned national recognition for quality care, including stroke care excellence at Bristol Regional Medical Center, a No. 1 ranking in Tennessee for vascular surgery at Holston Valley Medical Center, and top trauma care safety at Johnson City Medical Center.

David Lester, chair of Ballad Health’s Finance Committee, emphasized the system’s financial resilience despite the challenges.

“Even as we invest hundreds of millions of dollars in staff and technology while providing free care to nearly half of the local population, we have successfully executed a five-year debt reduction plan,” Lester said. “These ratings reflect the effectiveness of our integration efforts, allowing us to reinvest in increased access and improved quality.”

For more information on Ballad Health’s financial performance and strategic initiatives, visit www.balladhealth.org.