Portland, Ore.-based Legacy Health has added a covenant regarding its days cash on hand numbers, according to an April 3 filing.
The filing, which was partly entitled "reflecting financial difficulties," obligates the health system to maintain not less than 100 days of cash on hand as of the following dates: June 30, 2023; Sept. 30, 2023; and Dec. 31, 2023.
In the same filing, Legacy Health noted its amendment to a revolving credit agreement, which suspends its debt service coverage ratio for the reporting period ending March 31, 2023. The amendment to the credit agreement is linked with the onboarding of Silverton Health to the obligated Legacy Health group, the filing said.
Legacy Health will now ensure the covenant on debt service coverage is in place by the end of the fiscal year 2024, or March 31, 2024.
The system is in the process of ending maternity care at its Gresham, Ore.-based Legacy Mount Hood Medical Center, where it says it has struggled to find enough staff to offer labor and delivery services even with a dwindling number of patients.