The rating upgrade was based on a number of factors, including CMC’s improved financial performance, stronger balance sheet metrics and growing market share.
CMC has a 69 percent market share for pediatric services in Dallas, which is supported by the medical center serving as the pediatric teaching hospital for University of Texas Southwestern in Dallas.
CMC has a multiyear trend of improved earnings, with 2013 being an especially strong year for the medical center. For fiscal year 2013, the CMC posted $109.7 million of operating income and $185.5 million of operating cash flow.
The medical center also continues to improve its balance sheet. CMC had 464 days cash on hand at the end of fiscal year 2013, up from 438 days cash on hand at the end of fiscal year 2012.
CMC does face some challenges, such as receiving 64 percent of its gross revenues from Medicaid.
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6 recent hospital rating and outlook changes, affirmations
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