The affirmation of the rating was based on a number of factors, including LLUMC’s leading market position in its primary service area and improved operating losses at the Murrieta hospital. LLUMC-Murrieta’s operating losses are expected to drop
to $10 million in FY 2014 from $50 million in FY 2012.
The hospital also faces many challenges, which were considered for the rating assignment, such as its ongoing weak and variable operating performance through FY 2013 and through the first six months of FY 2014.
LLUMC’s unfavorable payer mix, modest liquidity and a very costly upcoming capital project are also potential challenges that factored into Moody’s rating.
More articles on healthcare finance:
For-profit hospital stock report: Week of Oct. 13-17
Moody’s upgrades St. Joseph’s Healthcare System’s rating to ‘Baa3’
How reducing healthcare spending affects economic growth: 4 things to know
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.