Community Hospital receives upgrade to AA- rating from Standard & Poor’s
FOR IMMEDIATE RELEASE
Contact: Monica Sciuto (831) 622-2756
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MONTEREY, Calif. — Community Hospital of the Monterey Peninsula’s credit score just went up. Standard and Poor’s, one of the nation’s leading experts in credit ratings for organizations, upgraded Community Hospital from an A+ to AA- rating on its public debt and an outlook of “stable” for the future. This rating matches the AA- stable rating from Fitch, an international ratings agency.
The positive credit rating shows that an objective third party has reviewed Community Hospital’s financial picture and found its business practices and outlook to be strong. It means the hospital is operating in a way that will allow it to remain financially sound into the future, continue to invest in new technology, recruit new physicians and staff to the area, upgrade buildings, constantly improve quality programs, and remain a leader in the industry as it addresses the new healthcare environment.
“We are proud to be among the very few independent hospitals in the nation that continue to have a strong financial base,” says Laura Zehm, vice president and chief financial officer at Community Hospital. “Taking good care of this community asset means we can proactively provide comprehensive services and improve care for our community in the years to come.”
Community Hospital is in a very small group of hospitals that have obtained this high credit rating. Of those stand-alone hospitals rated by Standard and Poor’s, only 10 percent have an AA- or better as published in the July 2015 Standard & Poor’s report. A higher credit rating and outlook make it possible for Community Hospital to obtain lending at lower interest rates in the future.
A large reason for the improved rating from Standard and Poor’s is based on Community Hospital’s vision, strategy, and execution of an integrated health system that proactively manages the health of its community. The report mentions Community Hospital’s “significant investments in strategies to improve population health.” Some strategies noted included the launch of the Aspire Health Plan’s Medicare Advantage product, and physician alignment efforts under Peninsula Primary Care. Other strategies include Community Health Innovations, a hospital partner that manages chronic health conditions within the community, and Central Coast Health Connect, an electronic health record partnership.
According to Standard and Poor’s report, Community Hospital received the high rating because of its strong balance sheet and reserves, consistently solid cash flow, debt burden of less than 2 percent, its market position, and favorable payer mix. Also mentioned in the report was Community Hospital’s longevity in executive leadership staffing, its strategies to improve population health, and its financial profile as it grows into a fully integrated health system.
ABOUT COMMUNITY HOSPITAL
Community Hospital of the Monterey Peninsula, established in 1934, has grown and evolved in direct response to the changing healthcare needs of the people it serves. It is a nonprofit healthcare provider with 220 staffed acute-care hospital beds and 28 skilled-nursing beds, delivering a continuum of care from birth to end of life, and every stage in between. It serves the Monterey Peninsula and surrounding communities through locations including the main hospital, outpatient facilities, satellite laboratories, a mental health clinic, a short-term skilled nursing facility, Hospice of the Central Coast, Peninsula Wellness Center, and business offices. Find more information about Community Hospital of the Monterey Peninsula at http://www.chomp.org/