Catholic Health East, Pa. (CHE) was formed on Oct. 25, 1997 through a transfer of certain assets from Philadelphia, Pa.-based Eastern Mercy Health System, Florida-based Franciscan Sisters of Allegheny Health Systems, and Springfield, Mass.- based Sisters of Providence Health System. CHE's rating reflects: Excellent financial and geographic dispersion combined with a generally successful record of business growth within the founding affiliates; A strong financial profile highlighted by sound debt service coverage, cash flow and liquidity for the system as a whole, and moderate debt levels; A well thought out governance and management structure that allows regional managers latitude to manage the regional business while keeping the central office focused on strategic systemwide issues; and Implementation of systemwide infrastructure in 1998
