Mountain View, CA - February 25, 2013 - El Camino Hospital today announced that Moody's Investor Service has upgraded the hospital's revenue bond rating to A1 from A2, following a review of the hospital's progress since Moody's issued its last rating in 2010.
"Hospital leadership has worked with the Hospital Board to expand the governance structure to include community leaders with significant subject matter expertise, hired nationally known industry leaders to fill the CFO and COO roles, and produced a strategic plan to position us for health reform to effectively meet the needs of our community," said Tomi Ryba, president and chief executive officer of El Camino Hospital. "Recognition of the relevance of these improvements by Moody's is gratifying."
The report, which can be accessed through Moody's website highlighted a number of the hospital's strengths, including:
- Sizeable, community hospital located in a geographically favorable area
- Potential for another year of strong profitability and operating cash flow generation, and double-digit cash flow margins
- Low debt load
- 95% seismic compliance through 2030, with final 5% 2030 compliant upon completion of minor voluntary upgrades in accordance with approved extensions by January 1, 2015
We are extremely pleased that Moody's recognized the hard work the hospital has undertaken in the last two years to stabilize and strengthen this valuable community hospital," said John Zoglin, chairman of the El Camino Hospital Board of Directors. "To receive an upgraded rating at a time when so many other hospitals and hospital systems nationwide are struggling further reinforces that we have the right management team, an enhanced governance structure, and long-term strategies in place that will enable us to make the necessary investments to care for the community."
The service issued a "stable outlook" for the hospital, though it acknowledges a number of challenges it is currently facing, including a highly competitive marketplace and the current uncertainty around Measure M. Despite that, the report states that it expects El Camino Hospital to "continue to produce strong operating cash flow given its favorable market presence and location and its continued focus on operating efficiencies, in order to support future capital plans, maintain solid liquidity and leverage measures and offset any future reimbursement declines and new competitive pressures."
Download a PDF copy of Moody's Report:
El Camino Hospital is an acute-care, 443-bed, nonprofit and locally governed organization with campuses in Mountain View and Los Gatos, Calif. In addition to state-of-the-art emergency departments, key medical specialties include Neuroscience, heart and vascular, cancer care, urology, orthopedic and spine, genomic medicine, and the only Women's Hospital in Northern California. The hospital is recognized as a national leader in the use of health information technology and wireless communications, and has been awarded the Gold Seal of Approval from The Joint Commission as a Primary Stroke Center as well as back-to-back ANCC Magnet Recognitions for Nursing Care.
The El Camino Hospital District was established by voter approval in 1956 in accordance with California Local Hospital District Law. The purpose of the District is to establish, maintain and operate or provide assistance in the operation of health facilities and other health care services provider, groups and organizations that are necessary for the maintenance of good physical and mental health in the communities served by the District. The District, now known as El Camino Healthcare District, encompasses most of Mountain View, Los Altos, Los Altos Hills; a large portion of Sunnyvale, and small sections of Cupertino, Santa Clara, and Palo Alto. The publicly elected El Camino Healthcare District Board of Directors approves tax dollar expenditures, including expenditures for the award winning Community Benefit program. Community Benefit funds are granted each year to local nonprofits, schools and government programs that provide critical health services to the underserved. All District Board meetings are publicly noticed, open to the public, and available for viewing on the District website.