The rating on New Jersey Health Care Facility Finance Authority's bonds, issued for Chilton Memorial Hospital, reflects a favorable payor mix, which helps contribute toward good financial performance, improved balance sheet, excellent debt service coverage, and a relationship with Valley Health System. Operating and excess margins were excellent in 1995 and 1996 with 8.9% and 6.9% operating margins, respectively, and 12% and 10.6% excess margins, respectively. However, margins dropped to negative 2% and 1.6% in 1996 due to one time expenses associated with an early retirement program, which was well received. Interim results for 1997 show a return to positive financial performance. Sept. 30, 1997 nine month actuals reflect operating and excess margins of 4.7% and 11.5%. Debt service coverage
