NEW YORK - Standard & Poor's Ratings Services said it revised its outlook to stable from negative and affirmed the BBB-plus rating on Wisconsin Health Facilities Authority's series 2002, 2003A, 2006A, and 2006B hospital revenue bonds, issued for Wheaton Franciscan Services Inc. (d/b/a Wheaton Franciscan Healthcare; WFH).
In addition, Standard & Poor's revised its outlook to stable from negative and affirmed its BBB-plus underlying rating (SPUR) on the authority's series 2003B variable-rate demand bonds, issued for WFH.
"The outlook revision reflects a significant improvement in WFH's financial performance in fiscal 2009 and in the six months through December 2009," said Standard & Poor's credit analyst Stephen Infranco. "The performance has contributed to better cash flow and an improvement in the debt service coverage ratio."
The improved results reflect the completion of an operational excellence plan which included revenue cycle initiatives and cost saving measures that yielded approximately $67 million of annualized savings as of Dec. 31, 2009, coupled with the favorable impact (about $47.9 million in fiscal 2009) of a recently passed state hospital assessment law that improved Medicaid rates for hospitals that serve a disproportionate share of Medicaid patients.
WFH is a Catholic-sponsored system that provides health services in Wisconsin, Iowa, and Illinois. The system has 12 owned hospitals, two sub-acute facilities, two home health agencies, several clinic sites, and about 700 employed physicians.
