Fitch IBCA Downgrades Goddard Memorial Hosp, MA To `BB+'.Business Editors NEW YORK--(BUSINESS WIRE)--March 29, 2000 The Massachusetts Health and Educational Facilities Authority's $15.0 million revenue bonds, series 1990B, issued on behalf of Goddard Memorial Hospital and $8.2 million revenue bonds, series 1990A, issued on behalf of Cardinal Cushing General Hospital, now known as Caritas Good Samaritan Good Samaritan man who helped half-dead victim of thieves after a priest and a Levite had “passed by.” [N.T.: Luke 10:33] See : Helpfulness Good Samaritan Medical Center, are lowered to `BB+' from `BBB-' by Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals . The primary reasons for the downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. include operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. in each of the last two years, weak coverage of maximum annual debt service (MADS), adequate liquidity, and the loss of a 80- member physician group. Fiscal year 9/30/99 and four months year-to-date results indicate operating losses of a negative 1.3% and 11.8% respectively. The recent losses at Good Samaritan are attributed to Bridgewater Goddard Park Medical Associates (Bridgewater), a 80-member physician group practice and Good Samaritan terminating their joint Medicare managed care contract. Bridgewater then entered into a joint Medicare managed care contract with a local provider. Bridgewater provided a majority of the patient volume to the Medical Center during fiscal year 1999. Discharges for the first four months of fiscal 2000 show a decline of 25% to 2,900 from 3,886 during the same period in fiscal 1999. The decline in discharges has resulted in a reduction in net patient revenue of 11.5% to $26.9 million during the interim period but related expenses have only declined 3.5% resulting in an operating loss of $3.3 million. Fitch IBCA believes that management's fiscal 2000 bottom line budget of negative $5.5 million is aggressive. The various pressures are substantial and Fitch IBCA's rating outlook is negative. Good Samaritan's future survival is directly tied to its ability to increase revenues by recapturing admissions, manage expenses and expand its physician base. Effective 10/1/99, Caritas Christi Health Care System became the sole corporate member of the medical center, and is not a guarantor for any of the medical center's existing or future debt. Caritas Christi, organized by the Archdiocese arch·di·o·cese n. The district under an archbishop's jurisdiction. arch  di·oc of Boston, provides community-based medicine and individual care to residents in Massachusetts, New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). and Rhode Island Rhode Island, island, United StatesRhode Island, island, 15 mi (24 km) long and 5 mi (8 km) wide, S R.I., at the entrance to Narragansett Bay. It is the largest island in the state, with steep cliffs and excellent beaches. . Good Samaritan is located in Stoughton, MA and is a 232 licensed bed acute care provider. |
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