The rating on Rhode Island Health&Educational Facility Building Corp.'s bonds, issued for Westerly Hospital, reflects an increase in managed-care business and decline in operating performance. Offsetting credit factors include: Increase in outpatient utilization, Manageable debt position, and Solid liquidity position. The outlook change reflects a slight decline in profitability and liquidity. The bonds are secured by a gross revenue pledge by the hospital. Inpatient admissions at the 75 staffed bed facility remained flat in 1998; however, outpatient visits jumped by 20.3% (281,918) and outpatient surgeries increased by 27.8% (6,955). The increase is primarily due to the addition of 22 new physicians over the past 24 months, both in existing practices and new specialties. An increase in managed-care business
