MedStar Health $600M Bonds Remain on RatingAlert-Evolving.NEW YORK--(BUSINESS WIRE)--July 26, 1999-- The Maryland Health and Higher Education Facilities Authority's (MHHEFA) approximately $300 million revenue bonds (Medlantic/Helix Issue), series 1998A and B and the District of Columbia's (DC) approximately $300 million variable-rate demand revenue bonds (Medlantic/Helix Issue), series 1998 A, B and C remain on Fitch IBCA's RatingAlert evolving. 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 currently maintains underlying ratings of 'A' on all of the bonds. Bonds are insured by Financial Security Assurance Inc. and Ambac Assurance Corp., whose claims-paying ability are both rated 'AAA' by Fitch IBCA. The RatingAlert evolving status primarily stems from MedStar Health's signing of a letter of commitment on March 24, 1999 to acquire the clinical enterprises of the Georgetown University Medical Center Georgetown University Medical Center (GUMC) is the medical campus at Georgetown University. It is co-located with Georgetown University Hospital on the University's main campus in Washington, DC. (GUMC GUMC Georgetown University Medical Center GUMC Gashland United Methodist Church (Kansas City, MO) ). The signing of the letter of commitment sets the stage for MedStar Health to conduct a full operations review of GUMC. A 120-day due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. period has been extended and resolution of this issue is expected in the fall. GUMC currently has 487 licensed hospital beds and is principally located in Washington D.C. Fitch IBCA continues to be apprised of this potential acquisition by members of MedStar Health's management. Fitch IBCA notes that this potential acquisition will increase pressure on MedStar Health as it continues to deal with issues surrounding integration of the former Helix Health System hospitals (a total of five) in a rate-regulated Maryland market that has significant competition. It is expected that in three months, Fitch IBCA will have receipt of the 1998 audit, more detail will be provided on the potential acquisition of GUMC, and a three-year system-wide strategic plan will be presented. MedStar Health is a large, integrated health care integrated health care, n healthcare services combining the best of conventional and complementary health care. system composed of seven hospitals (two in Washington D.C. and five in Baltimore) with a total of 2,567 licensed beds, four long-term care facilities long-term care facility n. See skilled nursing facility. , three freestanding ambulatory surgery centers ambulatory surgery center A free-standing center that performs various types of surgery , and several other health-care related organizations. MedStar Health is headquartered in Columbia, MD, with a significant presence in the greater Baltimore and Washington D.C. markets. |
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