MANAGEABLE DEBT LEVEL: UHH has a manageable debt burden, and has completed significantly all of its major capital spend needs with no plans to issue further long-term debt.
ADEQUATE LIQUIDITY LEVELS: UHH demonstrates sufficient liquidity relative to expenses with days cash on hand of 244.
As of six months ending March 31, 2012, UHH generated $2.
In addition, UHH has demonstrated an ability to recruit and retain a stable medical staff, adding two surgeons and a family practice physician in 2010 and 2011.
Located in Dodgeville, WI, approximately 45 miles west of Madison, WI, UHH consists of a 25-bed critical access hospital, a 44-bed nursing home, home health service, hospice service, as well as a limited partner in a 24-unit assisted living facility, and a durable medical equipment operation.
UHH continues to exhibit a strong ability to generate strong operating performance, as illustrated by increased operating EBITDA and a strong operating margin.
While UHH has a strong revenue base against all of Fitch's CAH rated peers, significant risks to that base exist due to its small size and reliance on a small cohort of physicians.
Beginning in 1987, UHH entered into an affiliation agreement with St.
The Stable Rating Outlook is based upon Fitch's expectation that UHH will maintain a sound liquidity position and operating profitability at or near expected levels given its rating.
began its construction and renovation plan in September 2006 and is now two-thirds complete, with the project expected to be fully finished in the fall of 2008.
UHH plans to construct a medical office building which is expected to open in November 2007.
Upon the issuance of the series 2006 revenue bonds, UHH plans to covenant to provide audited annual financial statements and quarterly disclosure to bondholders via the NRMSIRs.