...' and Stable Rating Outlook reflect Fitch Ratings' expectation that Marshal Medical Center (MMC) will continue to leverage its leading market position as the sole provider in its primary service area (PSA) and continue to benefit from California's Hospital Quality Assurance Fee (HQAF) program given its demographics and rural designation. The rating also reflects Fitch's opinion that although margins are volatile due to revenue recognition related to the HQAF program, from a normalized viewpoint, margins will remain adequate for the rating if MMC is able to recognize the managed care revenues of the program on a more consistent basis. The rating reflects Fitch's expectation that MMC will begin to improve profitability -- now that it is past the operating disruption caused by the recent implementation of an electronic health record system (EHR) -- and maintain key capital-related ratios commensurate with those at the 'BBB...
