Here are four things to know about the rating assignment and the hospital’s outlook.
1. The rating assignment is based on a number of factors, including CNMC’s strong market presence as a large regional pediatric provider and several years of good operating performance that continue through fiscal year 2015, despite a challenging payer mix with a high dependence on Medicaid, according to Moody’s.
2. Moody’s said CNMC has reaped benefits from a successful regional growth strategy focused on physician recruitment and alignment, partnerships with many adult hospitals in the region and an ongoing focus on improving quality and reducing costs. All of this, Moody’s said, contributed to favorable volume and revenue growth.
3. The hospital also faces challenges, which were considered for the rating assignment, such as potential government cutbacks and competition from nearby tertiary level providers who offer pediatric care.
4. CNMC’s outlook is stable, which reflects Moody’s opinion “that CNMC will continue to generate good operating margins leading to continued strengthening of
liquidity and debt coverage ratios given manageable capital needs and operating initiatives to sustain adequate margins.”
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