Community Hospital receives A+ rating from Standard & Poor’s
Contact: Monica Sciuto (831) 622-2756
Communication and Marketing: (831) 625-4505
MONTEREY, Calif. — In late 2014, Community Hospital of the Monterey Peninsula received positive news from Standard and Poor’s, one of the nation’s leading experts in credit ratings for organizations. Community Hospital was honored with an A+ rating on its public debt and an outlook of “positive” for the future.
What does this actually mean for Community Hospital and its patients? Most people focus on the quality of the medical care they receive. Many may not worry about the financial strength of the organization, or whether that hospital makes smart business decisions to sustain itself. Positive credit ratings show that an objective third party has reviewed Community Hospital’s financial picture and has found its business practices and outlook to be sound. It means that the hospital is operating in a way that will allow it to remain strong into the future, continue to invest in new technology, recruit new physicians and staff to the area, upgrade buildings, and to constantly improve quality programs, remaining a leader in the industry.
Community Hospital is in a very small group of hospitals that have obtained this high credit rating. Of those hospitals rated by Standard and Poor’s, only 24 percent have an A+ or better and fewer than 7 percent have a “positive” outlook.
“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. “This means we have taken good care of this community asset so that it will be here to provide for the health of the people in our region for a long time.”
A higher credit rating and outlook make it possible for Community Hospital to obtain lending at lower interest rates in the future.
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, as well as its movement into the health plan arena, with its Aspire Health Plan, a Medicare Advantage plan.
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/