Rating Agency Assigns Positive Outlook to Trinitas Regional Medical Center

Contact: Doug Harris

(973) 583-1091  dharris@trinitas.org

Rating Agency Assigns Positive Outlook to Trinitas Regional Medical Center

 

     Standard & Poor’s Rating Services has raised its outlook for Trinitas Regional Medical Center (Elizabeth, NJ) to positive from stable outlook and affirmed its BBB- rating on debt of $130 million.

     The Standard & Poor’s report cites the Medical Center’s “strong and growing cash and investment balances and stable earnings for the past three audited years with positive results expected again in 2012.”  The report states that the rating agency “could consider a higher rating within the two-year outlook period if TRMC maintains cash at levels greater than outstanding debt and posts at least 2 times debt service coverage for the next two fiscal years.”  Trinitas’ $165 million in unrestricted cash and investments equals 209 days’ cash on hand, according to the report.

     Described as “a safety net provider of health care,” Trinitas is the fifth highest recipient of charity care and health subsidy funding in New Jersey.  These funds, however, “have proven to be a stable funding source to the hospital,” according to the report.  In response to this challenge, Trinitas management has reduced expenses by nearly 4 percent since 2008.  Further, the report cites the work of Trinitas Chief Financial Officer Karen Lumpp, who was hired in 2008 and “has presided over almost four years of improved and positive financial performance by being conservative and well disciplined.”

     In addition, the report cites recent progress at Trinitas including construction of the $5.4 million Center for Regional Education funded entirely by philanthropy; progress on the Trinitas Comprehensive Cancer Center, and the completion of an energy improvement program partially funded by PSE&G.

     “I am gratified that our efforts to improve care and reduce expenses have been recognized by Standard & Poor’s,” notes Gary S. Horan, FACHE, President and Chief Executive Officer of Trinitas.  “This upgrade is especially meaningful for our bond investors as it comes at a time when most hospitals in our region are experiencing financial challenges.  I salute our Board of Trustees, our management staff, our 500 physicians and 2,700 employees for their many efforts to improve care in this challenging environment,” he adds.

     Trinitas Regional Medical Center, a major center for comprehensive health services for those who live and work in Central New Jersey, is a Catholic teaching medical center sponsored by the Sisters of Charity of Saint Elizabeth in partnership with Elizabethtown Healthcare Foundation.  With 549 beds and 10 Centers of Excellence across the continuum of care, Trinitas has distinguished itself in cardiology, cancer care, behavioral health, renal care, nursing education, diabetes management, wound healing and sleep medicine. For more information on Trinitas Regional Medical Center, visit: www.TrinitasRMC.org or the Municipal Securities Rulemaking Board website at www.emma.msrb.org.