Following a comprehensive financial review, Standard & Poor’s
Ratings Services (S&P) has raised its long-term rating of St. John's
Medical Center to BBB+. St. John's had been rated BBB by Standard
& Poor since 2010, when the hospital sought an investment rating to
refinance debt at the favorable rates available at that time. St. John's
CEO, Lou Hochheiser, MD, said, "As a small community hospital, this
change indicates our financial strength in a challenging marketplace.
We hope to continue to be strong financially while emphasizing quality
and personalized care."
Standard & Poor’s rationale for the BBB+ rating highlights the
hospital's strengths, which, according to the RatingsDirect report,
include an excellent business position covering an expansive service area;
continued strong operating results, partly because of continued volume
growth; consistent positive financial performance for the past five years;
and a sound balance sheet, with good liquidity and moderate debt.
The S&P analysis noted that since the facilities expansion is now complete,
the hospital's financials will reflect increased depreciation related
to the project. It is expected, but not certain, that growth in revenue
over time will offset the additional depreciation expense. S&P also
pointed out that due to St. John's relatively small revenue base,
the organization is sensitive to volume fluctuations. The rating agency
noted that operating margins have, nevertheless, been sound.
Ann King White, an auditor with the accounting firm BKD, which recently
completed a full audit of the hospital's fiscal 2014 financial statements,
said of the rating, "This is very high for the size of this institution.
Most hospital ratings went down."
For the full report from Standard & Poor's on the Teton County
Hospital District rating--including the rationale, outlook, enterprise
profile, financial profile, and related criteria and research--
click here or download the PDF from the link below.
Media Contact: Karen Connelly, 307 739 7380,