Summary: Washington Health Care Facilities Authority Peace Health

Peace Health Primary Credit Analysts: Lisa Zuckerman, San Francisco, (1)415-371-5036; lisa_c_zuckerman@standardandpoors.com Susan E Hill, New York, (1) 212-438-2021 The underlying rating on Washington Health Care Facilities Authority's bonds, issued for Peace Health is affirmed based on: Continued solid financial performance, Strong market position, and Good liquidity. The rating affirmation anticipates and factors in a $50 million commercial paper program that will be issued shortly. Peace Health, headquartered in Bellingham, Wash., operates five acute care facilities (800 beds total) in four distinct markets in Alaska, Washington, and Oregon. Inpatient market shares range from nearly 60% to 90% and each market has minimal (or no) competition, in two cases due to aggressive acquisitions and facility consolidation. The markets are also experiencing population

...The underlying rating on Washington Health Care Facilities Authority's bonds, issued for Peace Health is affirmed based on: + Continued solid financial performance, + Strong market position, and + Good liquidity. The rating affirmation anticipates and factors in a $50 million commercial paper program that will be issued shortly. Peace Health, headquartered in Bellingham, Wash., operates five acute care facilities (800 beds total) in four distinct markets in Alaska, Washington, and Oregon. Inpatient market shares range from nearly 60% to 90% and each market has minimal (or no) competition, in two cases due to aggressive acquisitions and facility consolidation. The markets are also experiencing population growth, although several of the markets themselves remain relatively small and economically dependent on one or two industries. Peace Health's net patient revenue has grown steadily to about $550 million in 1999, although total operating revenue declined in the past two years due to the...

Summary