Rush Medical Gets a Boost

Moody’s Investors Service has upgraded Rush University Medical Center’s Obligated Group rating by one notch to A2 due to its improved operating performance in recent years.

The action affects $619 million of debt. The obligated group saw especially strong results in fiscal 2010, overcoming a challenging economic environment and the difficulties of managing a major construction project with the building of a new hospital tower now underway.

Rush benefits from its operation of a sizeable academic medical center and has a track record of profitability since fiscal 2005. Strong results in fiscal 2010 improved liquidity to 143 days cash on hand from 128 days in 2009.

Rush’s challenges include operating in a competitive marketplace that includes four other academic medical centers. It also has an ambitious capital program and an underfunded pension plan. The new tower is set to be completed in 2012.

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Healthcare industry
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