The boards approved and implemented the mergers by means of "asset distribution in dissolution agreements" between IGRTC and LCMH and IGRTC and NRBH, executed simultaneously effective June 30, 2008.
Since July 1, both NRBH and LCMH have been integrating not only substance use treatment into their organizations but also separate and distinct cultures.
LCMH historically had light operating EBITDA margins for the category, producing much of its cash flow via investment returns.
The Stable Outlook is based on Fitch's expectation that LCMH will stem the decline in operating performance as a result of completing its major capital projects and successful ambulatory service expansion.
LCMH is licensed for 477 beds (operating 298) and generated $203 million in total revenues in the fiscal year ended June 30, 2012 (draft audit).
However, given the population density LCMH and Advocate Christ have maintained relatively stable market share positions over time.
As of fiscal year ending June 30, 2010, LCMH had $449 million in unrestricted cash and investments, equating to 868.
While LCMH will contribute a total $103 million in equity for the project by 2014, Fitch does not anticipate a material decline in absolute levels of unrestricted cash, since the equity contribution will be funded primarily through operating cash flow and capital campaign contributions.
With five acute care providers within the total service area, LCMH faces considerable competition for services.