El Camino Hospital Receives Bond Rating Upgrade From Moody's Investor Service
MOUNTAIN VIEW, Calif., Feb. 25, 2013 /PRNewswire/ -- El Camino Hospital today announced that Moody's Investor Service has upgraded the hospital's revenue bond rating to A1 from A2, following a review of the hospital's progress since Moody's issued its last rating in 2010.
"Hospital leadership has worked with the Hospital Board to expand the governance structure to include community leaders with significant subject matter expertise, hired nationally known industry leaders to fill the CFO and COO roles, and produced a strategic plan to position us for health reform to effectively meet the needs of our community," said Tomi Ryba, president and chief executive officer of El Camino Hospital. "Recognition of the relevance of these improvements by Moody's is gratifying."
The report, which can be accessed through the Moody's site highlighted a number of the hospital's strengths, including:
- Sizeable, community hospital located in a geographically favorable area
- Potential for another year of strong profitability and operating cash flow generation, and double-digit cash flow margins
- Low debt load
- 95% seismic compliance through 2030, with final 5% 2030 compliant upon completion of minor voluntary upgrades in accordance with approved extensions by January 1, 2015
"We are extremely pleased that Moody's recognized the hard work the hospital has undertaken in the last two years to stabilize and strengthen this valuable community hospital," said John Zoglin, chairman of the El Camino Hospital Board of Directors. "To receive an upgraded rating at a time when so many other hospitals and hospital systems nationwide are struggling further reinforces that we have the right management team, an enhanced governance structure, and long-term strategies in place that will enable us to make the necessary investments to care for the community."The service issued a "stable outlook" for the hospital, though it acknowledges a number of challenges it is currently facing, including a highly competitive marketplace and the current uncertainty around Measure M. Despite that, the report states that it expects El Camino Hospital to "continue to produce strong operating cash flow given its favorable market presence and location and its continued focus on operating efficiencies, in order to support future capital plans, maintain solid liquidity and leverage measures and offset any future reimbursement declines and new competitive pressures."
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