The two systems merged to form Presence Health, which hopes to earn an A- rating from Standard & Poor’s according to the report. The rating would likely cut interest the system would pay on new loans, and it would be a sign of delivering higher revenue and lower costs.
Currently, the hospitals have separate financial reports with plans of consolidation into a single group with bondholder approval. “This would be the equivalent of marrying your spouse and then taking on his car loan,” said Adam Lynch, vice president at Principle Valuation in Chicago, in the report. “It’s one thing to go down the aisle. It’s another to sign your name on the line for the Toyota Corolla for $7,000.”
New financial statements show Resurrection ahead and Provena behind budget.
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