Here are three things to know.
1. Last week, Bethesda Health reached out to bondholders, saying its debt service coverage ratio was not high enough to be in compliance with its bond agreements, and that it needed to reach a deal to avoid potential default, according to the report. The health system’s debt service coverage ratio must be 1.25 under its Series 2010A bonds, but the ration was only 1.1 at the end of the organization’s last fiscal year, the report states.
2. Bethesda CFO Joanne Aquilina told South Florida Business Journal the organization now has a waiver from lead bond lender BB&T to resolve the violation and reduce the ratio to 1.1.
3. In the report, Ms. Aquilina attributed the violation to a larger-than-expected operating loss. According to the report, Bethesda lost $21.7 million last fiscal year, partly due to medical malpractice judgements.
More articles on healthcare finance:
S&P affirms ‘BBB’ rating on Jackson Hospital & Clinic’s bonds, revises outlook to negative
Moody’s assigns ‘A1’ rating to Medical University of South Carolina’s bonds
Moody’s affirms ‘Aa2’ rating on Monongahela Valley Health System’s LOC-backed bonds
