Standard & Poor’s has revised its outlook on Hannibal Regional Hospital’s BBB-plus rating to negative from stable as the Missouri facility struggles with declining admissions.
“The outlook revision is driven by challenged operations in fiscal 2011 that were driven by softer-than-anticipated utilization statistics and what we view as management’s slow adjustment of its cost structure to the softer utilization,” said Standard & Poor’s analyst Brian Williamson.
The rating and outlook reflect a decline in admissions and operations that, while positive in unaudited fiscal 2011, declined to 0.2% compared to 5.1% in fiscal 2010.
“The main factor that supports the rating remains the improving balance sheet since HRH has completed a major capital plan a few years ago,” the report read.
The acute-care hospital has 105 licensed and staffed beds. It is located in Hannibal, about 114 miles north of St. Louis.
