Standard & Poor's Ratings Services said ti has revised its outlook to negative from stable and affirmed its BBB-minus long-term rating on Jefferson Parish Hospital Service District No. 2, La.'s $170 million series 2011 hospital revenue and refunding bonds, issued for Jefferson Parish Hospital District No. 2 doing business as East Jefferson General Hospital.
"The outlook revision and rating affirmation reflects our view of EJGH's failure to meet previously articulated projections including anticipated patient admission increases and breakeven profitability in the 2011 to 2012 time frame. The failure of EJGH to meet projections reflects what we believe is a weakened business position resulting from increased competition in its primary service area from new freestanding surgical centers that have reduced patient admissions and led to some physician defections contributing to an almost $13 million negative swing in the year-over-year comparison of the change in net assets for the nine-month period ended Sept. 30, 2012," said Standard & Poor credit analyst Ken Rodgers.