Fitch Ratings has affirmed the "BB+" rating assigned to $22.6 million of series 2012 fixed-rate bonds and $10.7 million of series 2005 variable rate demand bonds issued by the Colorado Health Facilities Authority on behalf of National Jewish Health in Denver.
The series 2005 variable rate demand bonds are secured by a letter of credit.
The rating affirmation was supported by a number of factors, including National Jewish Health's joint operating agreement with Denver-based Saint Joseph Hospital, which became effective in August 2014. Under the agreement, National Jewish Health and Saint Joseph Hospital revenues in Colorado will be combined, with National Jewish Health receiving a fixed percentage of the agreement's operating income. Fitch said it believes the agreement may accrue material financial benefits to National Jewish Health by "providing access to a larger patient base, reducing capital needs and helping to spread fixed costs."
National Jewish Health's signed agreements with Phoenix-based Banner Health, Icahn School of Medicine at Mount Sinai in New York City, and Rocky Mountain Hospital for Children in Denver also supported the rating affirmation.
The hospital does face some challenges, which were considered for the rating affirmation, such as weak 2014 financial results, according to Fitch.
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