NEW YORK - Moody's Investors Service said it has placed the A3 rating assigned to Tampa General Hospital, Fla.'s debt on review for possible downgrade.
The action reflects material deterioration in financial performance during the first quarter of FY 2012, following a weaker year in FY 2011. Revenues declined by 3.5% during the interim period, while expenses grew by 2.1%, resulting in a $13.1 million operating loss (-5.4% margin) in the first three months of FY 2012.
Operating cash flow was just $2.2 million (0.9% margin), resulting in very weak Moody's-adjusted MADS coverage of 0.36 times. Management states that the downturn in financial performance is due to a first quarter decrease in utilization as well as initial installation costs of a new electronic medical record system. Moody's expects to complete the review in the next 90 days.