The outlook revision on North Carolina Medical Care Commission's bonds, issued for New Hanover Regional Medical Center, is due to: A failure to meet financial projections following the purchase of Cape Fear Hospital in November 1998, Declining liquidity, and Increased reimbursement pressure. The Standard&Poor's underlying rating (SPUR) reflects: New Hanover's role as the dominant health system in Wilmington, N.C. and southeastern North Carolina, further enhanced by the successful integration of the majority of Cape Fear's service lines and physicians into a single health network; Historically good utilization statistics; and An experienced management team. The bonds are secured by a gross revenue pledge of the hospital. Financial performance in fiscal 1999 was weaker than expected, with an excess margin
