Tuesday, December 1, 2015

Moody's weighs Cooper Health credit rating boost

"Improved financial performance" at Camden hospital

Moody's weighs Cooper Health credit rating boost

Cooper University Hospital in Camden, NJ.
Cooper University Hospital in Camden, NJ.

Citing "improved financial performance" at Cooper Health System due to "strong volume growth" and its recent deal with Houston-based MD Anderson Cancer Center, Moody's Investors Service is weighing a boost to the hospital network's relatively low Baa3 credit rating, in advance of its expected $130 million bond sale scheduled for around July 15, writes analyst Sarah Vennekotter in a report to clients.

Hospital stays plus admissions are up more than 8% in fiscal 2012, proof of "Cooper's focus on expanding key service lines, successful physician recruitment efforts," and South Jersey dominance, writes Vennekotter. The hospital's cash position has improved to $264 million, or 124 days' expenses, from $197 million, or $88 million, in fiscal 2011.

But South Jersey remains "competitive," especially given its proximity to Philadelphia's university hospitals (Penn, Jefferson, Temple, Drexel), the Moody's report added. Cooper's exposure to Medicaid patients in its poverty-stricken hometown of Camden plus existing debt challenge the system's prospects, Vennekotter added.


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PhillyDeals posts interviews, drafts and updates that Joseph N. DiStefano writes alongside his Sunday and Monday columns and ongoing articles about Philadelphia-area business.

DiStefano studied economics, history and a little engineering at Penn. He taught writing and research at St. Joe’s. He has written for the Inquirer since 1989, except when he left a few times to work at Bloomberg and elsewhere. He wrote the book Comcasted, and raised six kids with his wife, who is a saint.

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