Nevada Hospital Negative

Standard & Poor’s last week revised the outlook on Nevada Regional Medical Center’s BBB-minus rating to negative. The action affects $21.7 million of debt.

The outlook revision reflects the hospital’s declining operations that have produced an operating margin of negative 1.5% in the eight months ending Feb. 28, extremely high dependence on the top 10 admitting groups, and loss of several physicians.

Credit factors in the center’s favor include liquidity levels equal to 168 days at the end of February; a solid business position with a 50% market share; and a stable management team.

The 63-bed medical center is located in Nevada, Mo., about 90 miles south of Kansas City, and is owned by the city.

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Healthcare industry
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