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METROWEST HEALTH (MA) REVENUE BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

 METROWEST HEALTH (MA) REVENUE BONDS RATED 'A' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Aug. 17 /PRNewswire/ -- The Massachusetts Health and Educational Facilities Authority's $18 million revenue bonds, Metrowest Health, Inc. Issue, Series A, are rated "A" by Fitch. The credit trend is stable. Bond proceeds will be used to refund $17 million in outstanding debt and to finance the acquisition of a linear accelerator.
 Metrowest Medical Center was established on Jan. 1, 1992, as a result of the merger of Framingham Union Hospital, a 252-staffed-bed community teaching hospital in Framingham, and Leonard Morse Hospital, a 162-staffed-bed acute care community hospital about five miles away in Natick. The combined entity is now a single multi-campus institution.
 The rating is supported by Metrowest's solid credit fundamentals, including a dominant market position, strong historical pro forma MADS coverage, operating and bottom line profitability, strong utilization results, a favorable payor mix, and a diverse, growing medical staff. In addition, a broad spectrum of services and a relatively low-cost structure will enhance the medical center's ability to compete in an environment which is increasingly being driven by managed care.
 Although Metrowest has significantly fortified its market position as a result of the merger, substantial outmigration to Boston and Worcester is a primary credit concern. The medical center's balance sheet leverage is also high, though debt service is manageable on a cash flow basis.
 Near term, management will continue to focus on achieving efficiencies while at the same time handling the administrative challenge of merging two distinct organizations with different corporate cultures. To date, the merger has proceeded according to plan and virtually all of the key management positions have been filled. A strategic plan is being developed which will chart the future direction of the multi-campus institution.
 The bonds will be secured by a pledge of the gross receipts of the obligated group. The obligated group, established with this financing, includes Metrowest Health, Inc., the corporate parent; Metrowest Medical Center; and Everbeech Management Corp., a non-profit management arm. Collectively, these entities account for over 95 percent of Metrowest's gross revenues.
 -0- 8/17/92
 /CONTACT: Andy Matteis of Fitch, 212-908-0501/ CO: MetroWest Health, Inc. ST: Massachusetts IN: HEA SU: RTG


GK -- NY044 -- 0486 08/17/92 11:57 EDT
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Date:Aug 17, 1992
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