The hospital’s strengths, including having 267 days cash on hand at the end of fiscal year 2014, were considered for the rating affirmation.
The University of Chicago Medical Center also faces a number of challenges, which were considered for the rating and outlook affirmation, such as its location in a very competitive market and its participation in an underfunded defined benefit pension plan.
Moody’s also affirmed The University of Chicago Medical Center’s negative outlook, which reflects that if the hospital “does not continue to improve its operating cash flow margin in FY 2015, a downgrade may be warranted,” according to Moody’s.
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