Moody’s assigns ‘Baa3’ rating to SoutheastHealth’s bonds

Moody’s Investors Service assigned its “Baa3” rating to Cape Girardeau, Mo.-based SoutheastHealth’s proposed $86.9 million series 2017A and $6.29 million series 2017B revenue bonds, to be issued through the Industrial Development Authority of the County of Cape Girardeau and the Industrial Development Authority of Stoddard County. The bonds will mature in 2042.

Advertisement

The rating assignment is based on several factors, including SoutheastHealth’s improving financial performance following a decline caused by a difficult EMR installation. SoutheastHealth also improved its financial position by restructuring its debt and properly managing capital spending. Moody’s also acknowledged the health system’s high dependency on government payers, aging population and competitive market.

The outlook is stable, reflecting Moody’s expectation that SoutheastHealth will maintain its stable operating performance to build liquidity. 

More articles on healthcare finance:
29 hospital, health system outlook and credit rating actions in July
Fitch: Failed ACA replacement efforts add to healthcare sector uncertainty
California implements balance billing rules: 5 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.

Download Whitepaper

The cost-saving opportunity most health systems overlook

Many hospitals and health systems scrutinize staffing, service lines, and payer contracts for savings. Fewer look at one of their largest assets: real estate.…

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.