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Up
The Mount Sinai Hospital, New York, NY
Rating:
Baa1
Outlook: Stable
Affected debt: $433.6 million
Agency: Moody’s Investors Service
Remarks: Upgraded from Baa2 thanks to dramatic turnaround in financial performance since 2003, marked by growing patient volume and liquidity position (168 days cash on hand).

Down
Good Samaritan Hospital, Lebanon, PA
Rating:
BBB
Outlook: Negative
Affected debt: $72 million
Agency: Standard & Poor’s
Remarks: Larger-than-budgeted operating deficit for second consecutive fiscal year in 2006. Cash flow has improved, but liquidity continues to decline for this market share leader in the area (58%).

Up
Lexington Medical Center, West Columbia, SC
Rating:
A+
Outlook: Stable
Affected debt: $288.97 million
Agency: Standard & Poor’s
Remarks: Successful completion of significant capital investments over past five years led analysts to believe the hospital will strengthen its balance sheet to levels consistent with an upgrade to A+ from A.

Down
The Westerly Hospital, Westerly, RI
Rating:
Ba3
Outlook: Negative
Affected debt: $11.2 million
Agency: Moody’s Investors Service
Remarks: Downgraded and maintained negative outlook because of sizable operating deficits and a severe decline in the hospital’s unrestricted cash balance from $23 million to $18.7 million in fiscal year 2006.

—Philip Betbeze