The rating on New Jersey Health Care Facilities Finance Authority's bonds, issued for Newcomb Medical Center, is affirmed. The outlook is "developing," meaning ratings could be raised, lowered, or affirmed. Issues surrounding Newcomb's potential liability to Medicaid remain unresolved, although progress in negotiations has been made. Newcomb posted poor financial performance ($14 million loss) in 1996. This was due partially to booking $13 million in reserves for potential repayment to Medicaid of revenues from three drug and alcohol clinics operated by Newcomb through a third party contractor. The remaining $1 million was lost because of revenue declines not being quickly offset by expense reductions. The year-end December 1997 audit is not yet completed. Year to date, through nine months of
