By Jessica Bartlett | Boston Business Journal, May 28, 2015
Standard & Poor’s has upgraded Cape Cod Healthcare’s bond rating, saying the institution's long-term financial profile appears strong due to excellent market share and a healthy balance sheet.
The bond rating takes Cape Cod Healthcare from an A- to an A, and it comes roughly a year after S&P boosted the health system’s bond rating to an A- from a BBB+ in 2013.
Standard & Poor’s has upgraded Cape Cod Healthcare’s bond rating, saying the institution's long-term financial profile appears strong due to excellent market share and a healthy balance sheet.
The bond rating takes Cape Cod Healthcare from an A- to an A, and it comes roughly a year after S&P boosted the health system’s bond rating to an A- from a BBB+ in 2013.
“We assessed Cape Cod Healthcare's enterprise profile as strong characterized by its dominant market share in a large primary service area, and its financial profile as strong, with consistently healthy financial operating performance in recent years and relatively light debt," said Jennifer Soule, a S&P analyst, in a press release.
In the first six months of fiscal 2015, Cape Cod's total revenue grew 10.5 percent to $368.9 million. Net patient revenue accounted for 98 percent of that amount.
Operating costs totaled $364 million in the first six months of fiscal 2015, also up 10.5 percent from the same period in fiscal 2014.
Despite the similar growth in revenue and costs, Cape Cod's operating income increased 6 percent to $4.8 million.
“We have come a long way in the last five years, and this latest ratings news is more confirmation that we are on the right track toward keeping this healthcare system strong and independent,” said Michael K. Lauf, president and CEO of Cape Cod Healthcare, in prepared remarks.
Cape Cod executives said the S&P upgrade stemmed from efforts to keep expenses in check and reinvest $250 million in the health system. Those investments included upgrades to Sandwich’s Stoneman Urgent Care Center in 2013; Harwich’s Fontaine Urgent Care Center in 2014; and a heart and vascular institute in 2014.
This year, the health system upgraded its emergency center at Falmouth Hospital and its emergency center Cape Cod Hospital.
“It’s extremely gratifying that Standard & Poor’s has recognized the strategies and plans Cape Cod Healthcare has implemented over the last several years to position the system on more stable financial ground,” said CCHC Chief Financial Officer Michael Connors.
In the first six months of fiscal 2015, Cape Cod's total revenue grew 10.5 percent to $368.9 million. Net patient revenue accounted for 98 percent of that amount.
Operating costs totaled $364 million in the first six months of fiscal 2015, also up 10.5 percent from the same period in fiscal 2014.
Despite the similar growth in revenue and costs, Cape Cod's operating income increased 6 percent to $4.8 million.
“We have come a long way in the last five years, and this latest ratings news is more confirmation that we are on the right track toward keeping this healthcare system strong and independent,” said Michael K. Lauf, president and CEO of Cape Cod Healthcare, in prepared remarks.
Cape Cod executives said the S&P upgrade stemmed from efforts to keep expenses in check and reinvest $250 million in the health system. Those investments included upgrades to Sandwich’s Stoneman Urgent Care Center in 2013; Harwich’s Fontaine Urgent Care Center in 2014; and a heart and vascular institute in 2014.
This year, the health system upgraded its emergency center at Falmouth Hospital and its emergency center Cape Cod Hospital.
“It’s extremely gratifying that Standard & Poor’s has recognized the strategies and plans Cape Cod Healthcare has implemented over the last several years to position the system on more stable financial ground,” said CCHC Chief Financial Officer Michael Connors.
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