Standard & Poor’s revised its outlook on Chippewa County Memorial Hospital’s below-investment-grade credit of BB-plus to stable from positive.
“The outlook revision reflects a return to operating profitability in fiscal 2007 that was sustained and improved in fiscal 2008,” said analyst Stephen Infranco. Limited liquidity levels remain an ongoing concern, but improved cash flow that has helped boost debt service coverage to 2.2 times provides some stability for the credit at the current rating level.
In fiscal 2006, the hospital experienced an 11% decrease in discharges, and as a designated sole community provider, filed a request for additional reimbursement under Medicare regulations that helped boost the latest operating results. It also implemented several cost-savings initiatives that helped boost its operations.
