Standard & Poor's Raises Cape Cod Healthcare's Bond Rating
Cape Cod Healthcare is pleased to announce that Standard & Poor’s Ratings Services has upgraded its long-term rating for Cape Cod Healthcare to “A” from its previous rating of “A-“. The Rating Outlook remains “Stable,” according to S&P.
“We assessed Cape Cod Healthcare’s enterprise profile as strong, characterized by its dominant market share in a large primary service area; and its financial profile as strong, with consistently healthy financial operating performance in recent years,” said S&P’s Credit Analyst Jennifer Soule in a press release about the upgrade. “Combined, we think these credit factors lead to an indicative assessment of “A’ and final rating of “A.”’
Ms. Soule went on to say that S&P expects CCHC to generate a fiscal 2015 profit in excess of budget from operations that is in line with fiscal 2013 and 2014 results.
Cape Cod Healthcare is the parent company of Cape Cod Hospital, Falmouth Hospital, the Visiting Nurse Association of Cape Cod, Cape Cod Healthcare Foundation, a medical group practice, six outpatient centers, a skilled nursing facility, and laboratory services, as well as several other programs and facilities.
“We have come a long way in the last five years, and this latest ratings news is more confirmation that we are on the right track toward keeping this healthcare system strong and independent,” said Michael K. Lauf, President and CEO of Cape Cod Healthcare. “Our Board, Administrative Team, Physicians and Staff deserve credit for developing a strategy, adopting a plan and working hard to put it in place.”
By paying close attention to expense control and efficiencies, CCHC was able to reinvest $250 million into the health system in projects, programs and personnel in recent years. Some of the most recent investments include:
- Stoneman Urgent Care Center in Sandwich – new in 2013
- Fontaine Urgent Care Center in Harwich – new in 2014
- CCHC Heart and Vascular Institute – new in 2014
- Yawkey Emergency Center at Falmouth Hospital – new in 2015
- Cape Cod Hospital Emergency Center – new in 2015
“Our entire Cape Cod Healthcare team worked hard to lay the groundwork for this wonderful news,” said CCHC Chief Financial Officer Michael L. Connors. “It’s extremely gratifying that Standard & Poor’s has recognized the strategies and plans Cape Cod Healthcare has implemented over the last several years to position the system on more stable financial ground. ”
Standard & Poor’s is a nationally recognized statistical rating organization designated by the U.S. Securities and Exchange Commission. In their notice of the CCHC upgrade, S&P noted that partially offsetting credit factors for CCHC include its “significant dependence on Medicare as a payor,” and “uncertain credit pressures associated with the impact of healthcare reform.”