The rating on Vermont Education&Health Building Finance Agency's bonds reflects: Strong primary care market position, Excellent debt service coverage, Improving liquidity, and Low debt. The bonds are secured by net revenues of Springfield Hospital. Weaknesses include out-migration and still unprofitable clinical operations and Medicare business. Direct competition in the hospital's large primary service area is limited with Springfield serving a consistent 55% of the inpatient market. In addition, the hospital solidifies its primary care market position by employing a majority of the area's physicians. However, a substantial 25% of the service area's discharges go to Mary Hitchcock Memorial Hospital, a tertiary referral center affiliated with Dartmouth University. Most of the remaining inpatient business is serviced by two very
