Friday, May 30, 2014
MetroHealth Upgraded To "Stable" By Fitch
Fitch Ratings has upgraded The MetroHealth System from a “Negative” outlook to a “Stable” one.
Fitch noted MetroHealth’s strong fiscal performance in 2013. The health system reported $18.9 million in operating income. Fitch also noted that the health system is ahead of budget in 2014. It expects such “profitability” to become more consistent given the recent expansion of Medicaid, which enabled MetroHealth to secure coverage for approximately 30,000 uninsured adults under an early waiver program entitled MetroHealth Care Plus. A significant percentage of MetroHealth’s patients have now shifted from self-pay (and charity care) to Medicaid.
“MetroHealth has a solid market position and plays an integral role as a provider of safety net services in the county,” Fitch said. “Despite (its) high percentage of Medicaid and self-pay patients, MetroHealth has demonstrated the ability to produce profitable operations.”
MetroHealth reported a preliminary operating income of approximately $4.2 million for the month of April, bringing its 2014 total to $8.4 million. Fitch also affirmed the health system’s “A-” rating for outstanding debt.
“We continue to demonstrate viability and strength in a changing health care landscape,” said Craig Richmond, chief financial officer. “This is good news, whether you’re a patient, donor or resident of Cuyahoga County.”