Great Plains Regional Medical Center

Fitch Downgrades Great Plains Reg Med Center (OK) to 'BBB'; Outlook Negative

CHICAGO--( BUSINESS WIRE )--As part of its ongoing surveillance efforts, Fitch Ratings has downgraded the Oklahoma Development Finance Authority, OK's approximately $41.5 million hospital revenue bonds (Great Plains Regional Medical Center) series 2007 to 'BBB' from 'BBB+'.

The Rating Outlook is revised to Negative from Stable.

RATING RATIONALE:

-?The rating downgrade to 'BBB' is due to deterioration in Great Plains Regional Medical Center's (GPRMC) financial profile to a level more characteristic of a 'BBB' rating level.

--Operating performance and cash flow have declined relative to historical performance.

--GPRMC's liquidity position remains solid but is significantly below its peak level at fiscal year end 2008 due to weaker than expected cash flow.

--GPRMC's decline in operations is exacerbated by a small total revenue base which poses inherent credit risks, making it vulnerable to fluctuations in medical staff composition, utilization trends and reimbursement levels.

--Credit strengths include GPRMC's limited capital needs due to the opening of its new facility in July 2009 and its solid market position.

WHAT COULD TRIGGER A DOWNGRADE:

--Inability to stabilize operations or a deterioration in liquidity metrics is likely to trigger a downgrade.

SECURITY:

Debt payments are secured by a pledge of the revenues of the obligated group and a debt service reserve fund.

CREDIT SUMMARY:

The downgrade to 'BBB' and Outlook revision to Negative reflect the lack of improved operations and profitability levels that were expected to materialize after opening the new replacement hospital in July 2009. GPRMC has experienced consistently declining profitability levels since fiscal 2006 and decreasing volume statistics in the nine month interim period ending March 31, 2011 (interim period). While strong relative to Fitch's 'BBB' medians, GPRMC's profitability decreased in each fiscal year since 2006. Operating EBITDA margin decreased 57% through fiscal 2010. While an operating EBITDA margin of 10.9% for the interim period remains above Fitch's 'BBB' median of 8.7%, Fitch expects GPRMC's profitability ratios to exceed the median ratios in order to offset the risks associated with its small revenue base.

Hospital hopes to offer more options for stroke - North Platte ...

The North Platte Telegraph

Hospital officials say Great Plains Regional Medical Center is close to becoming the first certified stroke center in central and western Nebraska. The designation would further another vision, which is to make GPRMC a regional healthcare destination.

"It would be great for the community, great for the hospital and great for our patients," said Irina Bassis, vice president of marketing and development. Dr. Jose Cardenas, stroke program director, said a designation would be based on the hospital meeting required national standards of care.

Before that could happen, policies, procedures and organized stroke teams of varying levels have to be put into place. He said the goal is to receive the designation this summer. The next closest certified stroke center is in Lincoln.

"Once we become a certified stroke center, we want to become a referral site," said Cardenas. "To keep a designation, we would have to show that we have maintained and improved our services every two years. Which is good, because that means we have to keep raising the bar."

Earlier this month, the hospital announced plans to expand, and when it does, the stroke department will be included in that move.

It's currently located in a physician office building at 611 West Francis Street, but could be relocated to a new facility, depending on what expansion option is chosen.

In September, Cardenas and Dr. Sona Shah will be joined by Dr. Sowmini Oomman, who is currently finishing a residency in the field of sleep medicine.

"We are going to be the only place in this area with three neurologists on site, offering 24-7 care," said Cardenas. "We are going to be extremely lucky, because that's not the norm. Most towns with stroke centers have one or two at most."

GPRMC wins Blue Distinction award: The North Platte Telegraph Great Plains Regional Medical Center has been name...

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