The bonds are secured by a gross receipts pledge of the Obligated Group and a mortgage on the main facility of ORMC.
MAINTAINING IMPROVED OPERATIONS: ORMC's performance in fiscal 2015 (year-end Dec.
Fitch views favorably the consolidation of outpatient services on ORMC's main campus and expects the opening of the MOB to have a positive impact on physician recruitment and outpatient volumes in the future.
ELEVATED DEBT BURDEN: ORMC's debt burden remains high stemming from the debt issued in connection with the construction of the new hospital, which replaced two former campuses and the 2015 financing of the MOB and cancer center.
WEAK LIQUDITY: ORMC's unrestricted cash and investments reported at $112 million at Dec.
ORMC operates a new 383 licensed bed facility (opened in 2011), located in Middletown, NY, approximately 65 miles northwest of New York City.
Fitch reports on the results of the ORMC Obligated Group, but will migrate to reporting on the consolidated system in the future.
ORMC is budgeting to end fiscal 2016 with operating income of $4.8 million for an 11.3% operating EBITDA margin, which Fitch believes is achievable.
ORMC, through the Medical Group, is now employing a group of hospitalists who have been instrumental in the seven months since coming on board, in helping to reduce the average length of stay to 4.7 days, which had risen to 4.9 last year.
ORMC unrestricted liquidity has grown in absolute terms driven by solid cash flow in the last two years, increasing from $71.8 million in 2012 to $112 million at year-end 2015, equating to 107 DCOH, better than the BIG category median of 86 DCOH, but cash to debt is still weak given the heavy recent investment in facilities.