Fitch Ratings has upgraded its rating of Cape Cod Healthcare to ‘A’ from its previous rating of ‘A-.’ The Rating Outlook is “Stable,” according to the credit rating agency.
“The upgrade of the rating to ‘A’ from ‘A-‘ reflects CCHC’s continued solid financial performance over the last four years, solid coverage of debt and low leverage, as well as continually improving liquidity, with metrics now largely consistent with Fitch’s ‘A’ category medians,” the agency said in its announcement of the upgrade.
Fitch Ratings is an international credit rating agency based in New York City and London. Fellow international credit rating company, Standard & Poor’s, has rated CCHC ‘A’ for the last two years.
“We are honored to be recognized by Fitch for our strong financial performance,” said CCHC Chief Financial Officer Michael L. Connors. “The upgrade is recognition of the hard work by everyone within the Cape Cod Healthcare system – from our physicians and staff, to our administration and board.”
Cape Cod Healthcare is the parent company of Cape Cod Hospital, Falmouth Hospital, the Visiting Nurse Association of Cape Cod, Cape Cod Healthcare Foundation, Emerald Physicians and Medical Affiliates of Cape Cod, five outpatient centers, a skilled nursing facility, and laboratory services, as well as several other programs and facilities.
In its announcement of the rating upgrade, Fitch noted as a “key credit strength” CCHC’s status as a sole community provider, “garnering dominant market share consistently above 70% in its primary service area.”
Fitch also listed as its reason for the rating upgrade its belief that “CCHC’s strong physician alignment, investment in primary care coverage in its service area, which now includes four urgent care centers, and continued development of clinical affiliations will help maintain its strong market presence.”
CCHC last year continued its strategic expansion of ambulatory services into the Cape Cod community, in order to increase accessibility to crucial healthcare services for Cape Cod residents and visitors, said Connors.
“By paying close attention to expense control and efficiencies, and making some tough decisions on expenses, we were able to continue to reinvest into the health system in new facilities, programs and personnel in the last year,” he said.
Notable in the last year were the addition of:
Fitch also noted CCHC’s affiliations with several highly respected institutions, which elevate the level of care available to patients in this region. Ongoing affiliations include Brigham and Women’s Hospital for radiology and cardiac surgery, Tufts Floating Hospital for Children for pediatric hospitalist services, and the University of Massachusetts Medical School residency program.