The rating on Hastings, Minn.'s bonds, issued for Regina Medical Center, reflects: Regina Medical Center's small physician staff, High patient out-migration to the Twin Cities for tertiary services, and Limited liquidity of $3.8 million, or 67 days' cash on hand. An investment grade rating is warranted, however, given: Stable utilization, Strong operating performance, and Moderate 48% debt to capitalization. Regina's medical staff consists of just 31 active physicians, and the leading 10 admitting physicians account for a high 52% of admissions. The hospital plans to recruit about five additional doctors by 2001. A newly added clinic should augment these efforts. Competition is a concern, with estimated inpatient out-migration to the Twin Cities for services in excess of 40%. Competitive pressures
