Mountain States Health Alliance Credit Rating Updated by Standard and…

Mountain States Health Alliance has perceived a ratings refurbish from Standard and Poor’s Rating Services, affirming a BBB+ rating. The rating opinion stays stable, with explanation that continued certain operational and financial trends during Mountain States “would support auspicious rating action” by a rating service.

The Standard and Poor’s rating comes 3 days after Moody’s Investors Services renewed a Baa1 rating with fast opinion for Mountain States. To perspective that report, revisit http://www.mountainstateshealth.com/Moodys.

The rating by Standard and Poor’s reflects, among other things, a rating agency’s perspective of Mountain States’:

  • Excellent business position, characterized by plain demographics, clever marketplace share and a extended operation of services
  • Strong supervision and governance
  • Continued clever financial opening and plain liquidity formed on days money on hand
  • Disciplined collateral spending in new years ancillary a rebate in precedence over time
  • Favorable record of integrating acquired facilities
  • Improvement in debt ratios
  • Stable to improving studious volumes

In a report, Standard and Poor’s pronounced it “views MSHA’s trends favorably, and, if sustained, we might lift a ratings in a future…” The rating group said, “in a view, MSHA generated plain handling opening in mercantile 2015, upheld by plain studious volume expansion and stability alleviation in a responsibility bottom mostly by labor and supply cost supervision efforts.”

Citing a continued handling hurdles for hospitals acted by downward payment vigour from supervision and blurb payers, a rating group said, “in a view, MSHA’s caring is capably handling these challenges.”

“The rating news from Standard and Poor’s is a really certain explanation on a operations of Mountain States Health Alliance, and we are beholden they commend a financial stewardship and peculiarity of a organization,” pronounced Mountain States’ President and CEO Alan Levine. “Our doctors and health caring professionals work tough each day to acquire a trust of a patients and their families, and it shows in a results.”

Standard and Poor’s cites that Mountain States Health Alliance has embarked on a devise to prune behind a debt, with a debt rebate devise certified by a house of directors in 2014. As referenced by a rating agency, Mountain States incurred poignant debt during a duration of expansion as several hospitals were acquired, new hospitals were built and vital investment was done in existent comforts in communities via a region. The vital tranches of debt have been: an estimate $340 million associated to a partnership of a former Columbia/HCA hospitals in a region, $355 million invested in partnership of additional village hospitals and successive deputy or capitalization of a hospitals, and $300 million associated to capitalization and investment into existent hospitals and services and investment in technology. Even as poignant debt rebate has taken place given 2014, Mountain States continues to deposit in a assets, appropriation this investment by handling money upsurge rather than borrowing. Mountain States has invested some-more than $110 million in collateral given Jul 2014.

Commentary on Proposed Merger with Wellmont

Mountain States Health Alliance and Wellmont Health System announced in Apr 2015, that they would try a partnership between a dual systems. Last week, a dual systems announced that both play of directors have certified a execution of a decisive agreement and a acquiescence of an focus for regulatory capitulation in Tennessee and Virginia. The partnership is approaching to start in late summer 2016.

Standard and Poor’s commented on a due merger, observant that, if approved, “we trust that, over time, a partnership of these dual health systems has a intensity to emanate both handling and financial synergies. Additionally, we trust that, individually, MSHA’s operational and financial trends have demonstrated alleviation over a past few years, and, if sustained, would support auspicious rating action.” The rating group says they are doubtful to take auspicious rating movement until a partnership is finish and there is demonstrated success in a formation of a dual systems.

“We are gratified Standard and Poor’s has once again endorsed a creditworthiness as a vital health system, and we sojourn committed to best use governance, that works collaboratively with supervision to grasp plain financial and handling results,” pronounced Mountain States Board Chair Barbara Allen. “We are also blissful that Standard and Poor’s recognizes a value of a due partnership with Wellmont. We determine that successful formation is key, and we trust we have a gifted supervision group to make it happen.”

The finish Standard and Poor’s news is attached.

About Mountain States Health Alliance

Since 1998, Mountain States Health Alliance has been bringing a nation’s best health caring tighten to home to offer a residents of Northeast Tennessee, Southwest Virginia, Southeastern Kentucky and Western North Carolina. This not-for-profit health caring classification formed in Johnson City, Tenn., operates family of 13 hospitals portion a 29-county region. Mountain States offers a vast tertiary sanatorium with turn 1 mishap center, a dedicated children’s hospital, several village hospitals, dual vicious entrance hospitals, a behavioral health hospital, dual long-term caring facilities, home caring and hospice services, sell pharmacies, a extensive medical supervision corporation, and a region’s usually provider-owned health word company. The group members, physicians and volunteers who make adult Mountain States Health Alliance are committed to caring for we and earning your trust. For some-more information, revisit http://www.MountainStatesHealth.com.

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