Moody's Investors Service has placed Saint Peter's University Hospital's Baa3 bond rating on review for downgrade, affecting $165.7 million of outstanding rated debt.
The hospital is a member of the Saint Peter's Healthcare System and is located in New Brunswick, N.J.
The action follows Saint Peter's release of its unaudited six months of financial statements ending June 30, 2012, which show a loss from operations of $4.2 million and operating cash flow of $9.8 million, excluding investment income.
"As a result, the operating cash-flow margin has declined to 4.6%, down from 6.7% in full fiscal year 2011 and reversing the financial improvement reported in fiscal year 2011," analysts said in a report.
Inpatient admissions have declined 5.4% through June 30, compared to the same period in 2011, while combined admissions and observation stays are down 4.4%, the report said.
Unrestricted cash and investments have improved from the end of fiscal 2011 to $93.6 million for the obligated group.
Moody's expects to conclude the review within the next 90 days.