The rating affirmation reflects Cape Fear’s dominant market position, with 88 percent of the inpatient market share in Cumberland County, N.C. In addition, the health system’s investment balances have grown over the last several years.
Cape Fear is also facing some challenges, such as an increase in debt in recent years to fund a capital project in Hoke County, N.C. The health system also has a challenging payer mix, with 20 percent Medicaid and 7 percent self-pay.
The stable outlook reflects the expectation that Cape Fear will maintain operating levels similar to fiscal year 2014, and complete its capital project.
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