Bangkok--11 Dec--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'A-' issuer credit rating (ICR) to Gerald Champion Regional Medical Center, N.M.'s outstanding debt. The outlook is stable.
"The rating reflects our opinion of the medical center's its history of sound financial performance and solid business position," said Standard & Poor's credit analyst Geraldine Poon. "However, the rating also reflects our concerns about the center's operations as a small hospital, including vulnerability with physician losses and a trend of decreasing market share and volumes, as well as the very preliminary possibility of additional debt to fund a master facility plan."
While longer-term plans for a new master facility plan including all private rooms are still very preliminary, management notes that there is the possibility of roughly $20 million in additional debt.
The Otero County area is home to Holloman Air Force Base and White Sands Missile Range. Holloman employs about 3,305 active-duty military personnel and contracts with Gerald Champion for health care services under a 15-year agreement that expires in 2013.
Gerald Champion is a 99-bed acute-care hospital located in Alamogordo, N.M., a relatively isolated area in Otero County. Gerald Champion is a sole community provider with market share of 73%. Nearby hospitals are located in Las Cruces, Albuquerque, and El Paso, Texas.
RELATED RESEARCH
USPF Criteria: "Not-For-Profit Health Care," June 14, 2007
USPF Criteria: "Debt Derivative Profile Scores," March 27, 2006
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Geraldine Poon, San Francisco (1) 415-371-5078
Karl Propst, Dallas (1) 214-871-1427
Key Contacts:
Americas Media Relations: (1) 212-438-6667
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[email protected]
Americas Customer Service: (1) 212-438-7280
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