Norman Regional Continues Making Progress on Financial Recovery and Long-Term Plan – Operation Independence

Norman Regional Health System has faced financial challenges in recent years, and we understand that headlines about our bond rating have raised questions about where the Health System stands today.

Today, Norman Regional is performing to budget, following a long-term recovery plan that we call Operation Independence – a reflection of our commitment to remaining and independently operated health system - and moving forward with additional financing that provides greater financial stability and flexibility. At the same time, our physicians, nurses and healthcare professionals continue caring for patients, strengthening services and working to ensure Norman Regional remains a vital part of this community for years to come.

Understanding Norman Regional's Recent Bond Rating

In September, S&P Global Ratings lowered the rating on certain Norman Regional Hospital Authority bonds to "D." The rating change occurred because a principal and interest payment due September 1 was purposefully delayed.

There is additional context that is important to understand what happened.

At the time of the payment, Norman Regional was already working with its bondholders to complete a new financing transaction. The Bond trustee, with support from a majority group of institutional bondholders, agreed the best course of action was to delay the payment while the process was completed. The financing plan included funds to complete the delayed September 1, 2026, bond payment.

Despite an agreement with bondholders due to S&P's rating criteria, a payment that is not made in full on its contractual due date results in a "D" rating, this is unfortunately regardless of the agreement surrounding the timing of that payment. The rating therefore reflects a specific debt-service event and fails to encompass the full story of the additional financing and debt realignment.

As projected, the payment has now been paid in full.

That is important information, but not the entire picture of Norman Regional's financial recovery.

Financial Recovery Is Moving in the Right Direction

Over the past year, Norman Regional has made significant changes designed to improve financial and operational performance.

Those efforts are producing results. Norman Regional is currently performing on budget and operating under a long-term strategy designed to strengthen the Health System's financial foundation, operations and quality.

Another significant step was securing new financing through the 2026 Bond Series. The financing provides additional liquidity and flexibility as Norman Regional continues implementing its recovery plan and working toward long-term financial stability.

The participation of Norman Regional's existing bondholders and financial partners in that process is also significant. These organizations have direct financial exposure to the Health System and have continued working with Norman Regional as the recovery plan moves forward. This financing and debt restructure bring NRHS into 100% compliance with all creditors for the first time since June 2023.

There is more work ahead. What it does provide is additional time, liquidity and flexibility to continue the progress already underway.

A Long-Term Plan for an Independent Norman Regional

Norman Regional's recovery is part of a larger strategy known as Operation Independence.

The goal is straightforward: strengthen Norman Regional financial footing while preserving its future as an independent, locally governed, comprehensive high quality, public-trust health system.

That means taking a close look at how we budget, operate, recruit healthcare professionals, invest in technology and facilities, and respond to a rapidly changing healthcare environment. We have embarked on a comprehensive 3 year strategic plan that encompasses not only financial improvement but operational and quality excellence.

It also means making decisions today that position Norman Regional to continue serving this community for generations.

Norman Regional is not being sold. The Health System remains an independent public trust, and the new financing does not change its ownership or that commitment.

As a public trust, Norman Regional does not operate to generate profits for outside shareholders. Resources are reinvested into patient care, physicians and healthcare professionals, services, technology and facilities that support the communities we serve. Norman Regional also does not receive taxpayer funding for its operation nor does the City of Norman have an obligation for Norman Regional’s debt.

Protecting Access to Local Healthcare

Financial recovery is ultimately about more than balance sheets and bond ratings. It is about ensuring Norman Regional can continue providing high-quality, personalized healthcare close to home. Accomplishing our Mission of providing personalized healthcare with compassion and excellence.

That work is happening every day.

Recently, Norman Regional also reached a new agreement with UnitedHealthcare that keeps the Health System in network for UHC patients, including those with commercial and Medicare Advantage plans. The agreement means those patients can continue receiving care through Norman Regional without disruption. While Norman Regional remains out of network with Aetna, negotiations are ongoing and we are hopeful that an agreement can be made that reflects fair market reimbursement for the care we provide.

Insurance negotiations like these are an important part of maintaining a sustainable health system. Norman Regional continues working toward agreements that appropriately support the cost of providing high-quality care while protecting patients' access to quality healthcare in their own community.

Moving Forward

The health system has a new leadership team in place following the selection of physician Aaron L. Boyd, MD, MBA, FACHE, as President and CEO in March 2025. They are dedicated to financial and operational improvement while providing personalized healthcare with compassion and excellence for the community and surrounding areas.

Norman Regional has served this community for more than 80 years, and our focus remains on being here for the decades ahead.

We recognize the financial challenges Norman Regional has faced, and we understand why our community wants clear information about our future. Our recovery remains a work in progress, and we will continue being transparent about both the challenges ahead and the progress being made.

Today, there are meaningful signs that Norman Regional is moving in the right direction.

Most importantly, our physicians, nurses and healthcare professionals continue doing what Norman Regional has always been here to do: care for our patients and our community.