The rating on New Jersey Health Care Facilities Finance Authority's bonds, issued on behalf of Englewood Hospital and Medical Center, reflects: * Weak profitability due, in part, to a restrictive governmental payor mix with 58% of revenues from Medicare and Medicaid; * Strong liquidity; and * Strong debt service coverage due to a light debt burden. Englewood Hospital and Medical Center, a 520-bed acute care, teaching hospital, is located in affluent and competitive Bergen County. A shifting payor mix, reduced state subsidies, and one-time restructuring expenses have dampened Englewood's recent profitability. Net patient revenues and operating income continue to decline. As a result, the hospital has generated excess income of only $1.2 million for the past two fiscal years (.78%
