The underlying rating on Montgomery County Higher Education and Health Authority, Pa.'s bonds, issued for Pottstown Healthcare Corp. (PHC), reflects: * A solid business position in a service area with limited competition, * A history of improved profitability generating solid debt service coverage, and * Excellent liquidity growth. The rating also reflects this additional debt, limited subsidies for physician subsidiaries, and affiliations with Jefferson Health System and Fox-Chase Cancer Center. PHC's major subsidiary is Pottstown Medical Center -- a 212 staffed bed acute care facility. Inpatient volume at the medical center rose to 8,690 admissions in 1997 complemented by growth in the center's transitional care unit and a solid obstetrics program. As the sole provider in its narrowly drawn primary
