Summary: Richmond Hospital Authority, Indiana Reid Hospital; Hospital

S&P Global Ratings revised its outlook to negative from stable and affirmed its 'A-' long term rating on the Richmond Hospital Authority, Ind.'s $92 million series 2015A fixed-rate bonds, issued for Reid Hospital (doing business as Reid Health). The outlook revision reflects inconsistent operating performance resulting in a large unbudgeted operating loss in fiscal 2018 that continues through first-quarter fiscal 2019, and the uncertainty surrounding the acquisition of a nearby hospital, currently in bankruptcy, that required Reid to take out additional debt. The rating reflects Reid's dominant market share, although it is in a comparatively limited primary service area (PSA); historically robust balance sheet with very high reserves; low average age of plant; and solid maximum annual debt service (MADS)

...S&P Global Ratings revised its outlook to negative from stable and affirmed its 'A-' long term rating on the Richmond Hospital Authority, Ind.'s $92 million series 2015A fixed-rate bonds, issued for Reid Hospital (doing business as Reid Health). The outlook revision reflects inconsistent operating performance resulting in a large unbudgeted operating loss in fiscal 2018 that continues through first-quarter fiscal 2019, and the uncertainty surrounding the acquisition of a nearby hospital, currently in bankruptcy, that required Reid to take out additional debt. The rating reflects Reid's dominant market share, although it is in a comparatively limited primary service area (PSA); historically robust balance sheet with very high reserves; low average age of plant; and solid maximum annual debt service (MADS) coverage. Fiscal 2018 ended in a large operating loss which management attributes to one-time costs associated with the electronic medical record (EMR) implementation, coupled with light...

Summary