Cites Significant Improvement in Operating Performance
BROWNS MILLS, N.J.--(BUSINESS WIRE)-- Fitch Ratings of New York on Thursday re-affirmed Deborah Heart and Lung Center’s B Rating and issued a stable outlook on Deborah’s outstanding $21.2 million New Jersey Health Care Facilities Authority’s revenue bonds. This is the second year for Deborah’s stable outlook rating, underscoring Deborah’s return to solid financial ground, after recovering from fiscal setbacks during the 2008 national financial crisis.
Fitch attributes Deborah’s continued financial successes to the opening of a new satellite emergency department on campus, resulting in an additional 90 admissions per month; a reduction in operating losses to $1.3 million in 2010 from a $5.9 million loss in the prior year, continuing the trend during the interim period with a loss of $2.2 million as compared to $2.6 million for the prior year’s interim period; an increase in revenues owing to more robust volumes, including an increase in open heart surgeries; and the expectation that revenues will continue to grow with additional demand for services from the anticipated opening of the new Joslin Diabetes Center, planned for later this year.
Fitch’s credit summary reflects the improvement of Deborah’s financial operations which has been maintained for fiscal 2010 and for the five-month 2011 interim period, and the stable outlook is based on Fitch’s expectations that Deborah will be able to continue to maintain the improvement of its operating performance at a lower operating loss level, reducing the need for Foundation transfers.
“We are pleased to see that Fitch has recognized the hard work at Deborah to keep our financial house in order,” said Deborah’s President and CEO Joseph P. Chirichella. “Like many other hospitals, the economic crisis of 2008 hit us hard, but we put a plan in place to streamline our operations while also building our market through strategic business initiatives. This combined together has stabilized our base, and has enabled us to maintain -- and grow -- our core, ensuring a healthy financial future.”
CONTACT:
Deborah Heart and Lung Center
Donna McArdle, 609-893-1200 ext. 5845
KEYWORDS: United States North America New Jersey
INDUSTRY KEYWORDS: Health Cardiology Hospitals Philanthropy Professional Services Finance Other Philanthropy General Health
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