Mountain View, CA - August 5, 2013 - Standard & Poor's Ratings Services (S&P) has affirmed its A+ underlying rating and long-term rating for Santa Clara County's series 2008 revenue bonds issued for El Camino Hospital. S&P also affirmed its A+ underlying rating and AAA/A-1+ long-term joint criteria rating on the county's series 2009A variable rate demand bonds. The outlook for El Camino Hospital's overall long-term debt of $332 million is stable.
"This favorable rating reflects El Camino Hospital's commitment over the past few years to improving our operating performance and efficiencies," said Michael King, chief financial officer of El Camino Hospital. "We are pleased to continue delivering high quality care to our community while maintaining financial strength within a competitive marketplace."
According to S&P, this rating reflects the following key factors:
- Strong operations, with a $60 million operating surplus for fiscal year 2012 representing a 10.1% operating margin;
- Improved operating liquidity, with unrestricted cash and investments of $599 million as of May 31, 2013, representing 360 days' cash on hand, which S&P considers strong;
- Low leverage of only 25% total long-term debt to capitalization as of May 31, 2013 and limited capital needs; and
- Good economic fundamentals in the operating environment, with above average income indicators
Additionally, S&P considers the hospital's affiliation with the Palo Alto Medical Foundation (PAMF) to be beneficial, given the focus on enhancing clinical programs, coordinating risk sharing and developing joint, region-wide strategic plans.
About El Camino Hospital
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.
