Standard and Poor’s (S&P) raised its rating from BBB to A- on 2013 revenue bonds that Hardin County issued on behalf of Hardin Memorial Health (HMH). HMH officials call the rare two-level rating jump an affirmation of years of hard work to strengthen and grow HMH.
According to HMH CEO Dennis Johnson, downgrades are outpacing upgrades in the healthcare industry by two to one. “An upgrade by two levels is virtually unheard of and speaks volumes about the HMH team – our staff, physicians, board and leadership all contribute to HMH’s tremendous success,” said Johnson.
Johnson added that for an independent county-owned system like HMH, an A rating of any kind is even more incredible.
S&P provides global high-quality market intelligence in the form of credit ratings, research, and thought leadership. S&P is known for its stock market indices throughout the world and is considered one of the big three credit-rating agencies.
S&P pointed to HMH’s improved financial performance over the past two years as its rationale for the ratings increase and also noted HMH’s strong net patient revenue, profit margin and debt service coverage as well as its days cash on hand that increased by two-thirds.
HMH CFO Lennis Thompson said S&P acknowledged HMH’s growth in outpatient services and he confirmed that the large number of new physicians and specialists added to the HMH team contributed to the positive financial performance. “Patients can receive advanced care from providers who treat them like family so our volumes continue to grow,” said Thompson.
Johnson said that the strategy centered on physicians, facilities and service HMH leadership and the board of trustees put in place five years ago is having a tremendous positive impact and creating the momentum.
“We are attracting world-class providers who provide the most advanced healthcare available in Central Kentucky” said Johnson. “We are also renovating and building new facilities to meet the demands of our growing region. This S&P upgrade speaks to both the strength of our services and our strong financial performance”.
“This accomplishment is evidence of great leadership and stewardship on the part of HMH and it is another indication of Hardin County’s healthy economy,” said Harry Berry, Hardin County Judge-Executive and Chairman of the HMH Board of Trustees.
Read the Ratings Direct Analysis for Hardin Memorial Health here.
Read the S&P Press Release here.