The rating on the New Jersey Health Care Facilities Financing Authority's bonds, issued for St. Joseph's Hospital&Medical Center, is based on a good financial performance and balance sheet and excellent market position. Concerns include payor mix, historic dependence on state subsidies, and competition from other developing health care systems. The impact of the recently approved charity care bill, providing for the continuation of such funding (at a lower level) for two years, influenced the rating. The state's demonstrated intent to provide these funds implies that there most likely will be a replacement funding source when this program expires. St. Joseph's is a 651-bed tertiary facility in Paterson, a demographically disadvantaged community. This is reflected in the payor mix,
