The rating affirmation was supported by a number of factors, including FMH’s dominant market share. The hospital has a 71 percent market share in its primary service area, and its largest competitor has a market share of less than 5 percent.
In addition, the rating affirmation was supported by FMH’s growing liquidity. As of June 30, the hospital had $166 million in unrestricted cash and investments, or 186 days cash on hand.
FMH also faces some challenges, which were considered for the rating affirmation, such as its weakened operating profitability. The hospital posted a -1.4 percent operating margin for fiscal year 2014.
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