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FITCH SEES NO IMMEDIATE EFFECT ON HOSPITAL BONDS FROM CLINTON PLAN -- FITCH FINANCIAL WIRE --

 NEW YORK, Sept. 22 /PRNewswire/ -- President Clinton's proposed health care reform plan will have no immediate effect on Fitch hospital bond ratings.
 The reform legislation will reduce payments to providers, increase competition and promote provider contracting for services. Since these factors exist to some extent in today's health care marketplace, they are already reflected in Fitch ratings. Well positioned hospitals will continue to fare well in the face of health care reform. Those with low market share, high cost structures, antiquated management information systems or poor liquidity will not fare as well.
 Certain issues hospitals now face will be accelerated under the plan. These include the growth in managed care, competition for a declining inpatient market, the need for improved product costing, quality concerns, and reimbursement rate erosion. Offsetting potential reductions in patient service revenues, the plan would extend coverage to the uninsured, relieving hospitals of the burden of uncompensated care.
 Fitch expects hospitals in its 'A' and 'AA' categories to fare well under Clinton's proposed reforms, since these ratings reflect strengths in areas likely to be important for prospering under reform. Hospitals rated in the categories of 'BBB' and below may not fare as well under elements of the reform plan and should be monitored. They are:
 Anna Jaques Hospital, Massachusetts
 Annie Penn Memorial Hospital, North Carolina
 Cape Cod Health Systems, Massachusetts
 Cape Coral Hospital, Florida
 Conemaugh Valley Hospital, Pennsylvania
 Cooley Dickinson Hospital, Massachusetts
 Davis Memorial Hospital, West Virginia
 Dimensions Health Corporation, Maryland
 Eastern New Mexico Medical Center Project, New Mexico
 Faulkner Hospital, Massachusetts
 Goddard Memorial Hospital, Massachusetts
 Good Shepherd Rehab. Hospital & Related Entities, Pennsylvania
 Greater Southeast Healthcare System, Maryland
 Griffin Hospital, Connecticut
 Halifax Memorial Hospital, North Carolina
 HealthEast, Minnesota
 Holy Family Hospital & Valley Regional Health System, Massachusetts
 Jennie Edmundson Memorial Hospital, Iowa
 Lowell General Hospital, Massachusetts
 Medlantic Healthcare Group, Inc., District of Columbia
 Montgomery General Hospital, Maryland
 Morehead Memorial Hospital, North Carolina
 Moritz Community Hospital, Idaho
 New England Medical Center Hospitals, Inc., Massachusetts
 New York City Health and Hospitals Corp., New York
 Palisades Medical Center, New Jersey
 Saints Memorial Hospital, Massachusetts
 Southern Ocean County Hospital, New Jersey
 Symmes Hospital, Inc., Massachusetts
 Ty Cobb Healthcare System, Georgia
 Union Hospital, Ohio
 Valley Health System, California
 WalthamWeston Hospital and Medical Center, Massachusetts
 -0- 9/22/93
 /CONTACT: Jeff Schaub, 212-908-0680 or Ed Merrigan, 212-908-0513, both of Fitch/


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SM -- NY084 -- 4860 09/22/93 16:34 EDT
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Publication:PR Newswire
Date:Sep 22, 1993
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