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Princeton Community Hospital, Princeton, WV
Rating:
B2
Outlook: Positive
Affected debt: $42 million
Agency: Moody’s Investors Service
Remarks: Recent 6 percent increase in inpatient admissions and an 8 percent jump in outpatient admissions attributable to key additions to medical staff and better physician access to diagnostic services.

Down

Sharon Regional Health System, Sharon, PA
Rating:
BBB+
Outlook: Stable
Affected debt: $30.7 million
Agency: Standard & Poor’s
Remarks: Persistent weak demographics, declining volumes, a modest amount of additional debt and a balance sheet light for an A-rated category contributed to the downgrade from A-.

Up

Atlantic Health System, Morristown, NJ
Rating:
A2
Outlook: Positive
Affected debt: $344 million
Agency: Moody’s Investors Service
Remarks: Favorable operating effect expected from divestiture of Mountainside Hospital from the system. Large annual operating deficits at Mountainside have detracted from the positive financial performance of the system’s other two hospitals.

Down

Baptist Health System of East Tennessee, Knoxville
Rating:
Ba2
Outlook: Negative
Affected debt: $193 million
Agency: Moody’s Investors Service
Remarks: Sizable increase in operating losses in fiscal year 2006 and continuing in FY 2007 year-to-date. Positives include the replacement of vacant management positions with Wellspring Partners consultants brought in to engineer a financial turnaround.

Up

Texas Health Resources, Arlington, TX
Rating:
AA-
Outlook: Stable
Affected debt: $695.57 million
Agency: Standard & Poor’s
Remarks: Strong market presence and solid financial position in high-growth service area. Operating surpluses have averaged $156 million in the past three fiscal years, and management has shown willingness to divest underperforming assets.

—Philip Betbeze