The rating on California Health Facility Finance Authority's bonds, issued for the Hospital of the Good Samaritan, reflects: * Significant progress towards operating profitability, * Strong liquidity, * Recent stabilization of the management team after several years of turnover, * Growing business volumes, and * A good reputation in tertiary care and medical research. Offsetting rating factors include a very competitive service area in the heart of the Los Angeles market, a considerable residual need for operational improvement despite good progress made in 1997, and a restrictive payor mix with 52% from governmental payors and 45% from managed care. The new senior management team has been in place since mid-1996, and is beginning to make a substantial dent in the
