Caritas Christi bond upgraded

FALL RIVER – Moody’s Investor Service has upgraded its bond rating for Caritas Christi Health Care, the Roman Catholic health system that includes St. Anne’s Hospital in Fall River, from Baa2 from Baa3 for fiscal 2009, and improved its outlook from negative to stable.
The upgrade follows a similar move late last year by Standard & Poor’s, which changed its outlook to positive from negative and affirmed its ‘BBB’ rating on the system’s bonds.
The Moody’s report cites “streamlined” management reporting lines with “higher standards of accountability,” along with “a change in culture and a new, clearer governance structure,” and it notes that the system boosted revenue by 3.6 percent from fiscal 2008 to 2009 “through improved managed care rates and better revenue cycle management.”
In a news release, Caritas Christi officials said Moody’s showed greater confidence in senior management’s ability to successfully manage operations, and it recognized improved physician relationships as well.
Caritas Christi’s current president and CEO, Dr. Ralph de la Torre, a cardiac surgeon and health care entrepreneur, came on board in April 2008. Under his leadership in fiscal 2009, the hospital netted a 2.3 percent operating margin and improved its cash flow margin to 7.3 percent.
In fiscal 2008, the hospital had a 2 percent loss on operations and a 3 percent cash flow margin.
The system’s governance has also changed substantially in this time. In May 2008, the Archdiocese of Boston relinquished its control of the company, retaining limited reserve powers, and the board was restructured to add members with specific health care expertise.
Standard and Poor’s last year attributed its outlook improvement to the health system’s management team and well-defined strategic plan, as well as to a solid base of employed physicians and successful alliances with key providers.
To learn more about Caritas Christi, go to www.CaritasChristi.org.