Hospital Drops a Bit

Moody’s Investors Service last week downgraded to A2 from A1 its rating on Elkhart General Hospital, affecting $86.6 million of bonds.

The agency revised its outlook to stable from negative at the lower rating.

The downgrade reflects a weak regional economy and a declining financial and operating performance, Moody’s said. The hospital also faces challenges from a $167 million, five-year capital plan which could pressure the bottom line.

However, the system has no immediate plans to issue debt, Moody’s said.

Analysts said the system could see improvements from its new affiliation with a South Bend-based hospital.

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Healthcare industry Indiana
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