S&P upgrades Group Health

Standard & Poor’s said it raised the long-term counterparty credit and financial strength ratings on Group Health Cooperative and its core operating subsidiaries to BBB+ from BBB-.

The outlook is stable.

The upgrade mainly reflects the company’s continued improvement in its competitive position, S&P said.

This is further underscored by profitable growth and the ability to redirect its membership to greater use of Group Health Cooperative’s employed physicians from higher-cost external delivery system options, the agency said.

The company also has embarked on significant cost-restructuring efforts, choosing to dispose of its hospital licenses while focusing on inpatient costs of care locally, S&P said.

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