CFO Thomas Johnson: Positioning Southeastern Regional for Success
For Thomas Johnson, CFO of Southeastern Regional Medical Center in Lumberton, N.C., and the rest of the hospital's executive team, financial difficulties appear to be few and far between, which cannot be said for many hospitals in today's environment of decreased reimbursement.
Standard & Poor's Ratings Services and Fitch Ratings each recently rated SRMC's bonds with an "A" rating. Fitch analysts said the biggest drivers for SRMC's positive credit rating were its strong market share, solid liquidity and manageable debt burdens. Mr. Johnson has helped grow SRMC's market share to 63.3 percent in its primary service area, and the hospital's cash-to-debt ratio stood at 252.3 percent in the last quarter.
S&P similarly credited Mr. Johnson and the hospital management team for growing its market share as the sole provider in its county, along with positive operating figures. S&P also said SRMC is positioned to benefit from North Carolina's Medicaid provider fee, which should contribute to the hospital's revenue stream.
"While SRMC was already improving underlying operations through physician recruitment and favorable business volume, the reimbursement projected over the next two years through the provider fee should allow for much greater cash accumulation and balance sheet growth," said Stephen Infranco, an S&P credit analyst.
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