Ratings Agency Raises Concerns About Massachusetts’ Saints Medical Center

Following the disclosure that Saints Medical Center in Lowell, Mass. may be on the hook for $14.5 million for potential Stark Law violations, Fitch Ratings revised its rating on $51 million of the hospital’s revenue bonds to “evolving” from “positive,” according to a report in the Boston Business Journal.

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Since the hospital only had $11.2 million in unrestricted cash and investments at the end of 2009, such a payment would dramatically affect the hospital’s finances, according to the report.

The hospital’s ongoing discussions with CMS to resolve the potential Stark violations have delayed an affiliation agreement with Covenant Health that included Covenant’s refinancing of Saints’ bonds.

Read the Boston Business Journal report on the credit rating on Saints Medical Center.

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