Moody's Investors Service has affirmed Greenville, N.C.-based Vidant Health's credit rating and stable outlook, saying the system has "continued strong operating performance and revenue and patient volume gains."
Through the first nine months of fiscal year 2013, Vidant's operating cash flow margin was 11.4 percent, and patient volumes have increased every year over the past five years due to the system's active acquisition strategy, Moody's analysts said. In FY 2012 alone, Vidant's revenue grew 17 percent. The credit ratings agency said it expects Vidant will "continue to record strong operating results" and grow its liquidity.
Moody's affirmation comes as Vidant announced it would close Vidant Pungo Hospital, a 25-bed critical access hospital in Belhaven, N.C. Vidant President and CEO David Herman, MD, said the system voted to shut down the CAH and instead "seek affordable and sustainable solutions for healthcare delivery" in the region, which will include a new $4 million multispecialty clinic.
In a FAQ section on Vidant's website, the system also said closing Vidant Pungo Hospital was necessary due to the facility's poor condition and the high operating costs. "We looked at a number of options and neither the community nor Vidant Health can afford to sustain the losses incurred by the hospital," according to the system's website.
The 24-hour clinic will offer urgent care and certain outpatient services. It is expected to be completed in 18 months.
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