The rating on New Jersey Health Care Facilities Finance Authority's bonds, issued for Columbus Hospital in Newark, reflects the hospital's obligation to repay $10.5 million in conjunction with a tentative resolution with the state for settlement of issues involving Medicaid reimbursement. The exact terms of the final payment schedule have not yet been determined, however, Columbus Hospital's liquidity remains extremely poor at around 7-10 days, so even the most liberal repayment schedule is likely to negatively impact hospital operations. In light of the investigation and likely repayment, Columbus earlier this year requested proposals from several New Jersey-based health systems for a potential merger with or acquisition of its facility. Columbus recently signed a letter of intent with Cathedral Health Services,
