Moody's Investors Service revised its outlook for Doylestown Hospital, Pa. to stable from negative while affirming its Baa2 long-term rating to $135.7 million of outstanding bonds issued by the Doylestown Hospital Authority.
The revision reflects "three years of improved operating margins and increased, though still modest, cushion for debt covenants contained in variable rate bank agreements," the rating agency said in a report.
Moody's cited improved admissions in fiscal 2012, with 68% lead inpatient market share in their primary service area of central Bucks County; favorable demographics and wealth measures in the county; proactive management; and continued operational turnaround at Pine Run nursing home.
Challenges, said Moody's, include greater Philadelphia-area competition, including Abington Memorial Hospital, Abington Health Lansdale Hospital and Grand View Hospital. Doylestown is about 25 miles north of Philadelphia.