At June 30, 2008, SPMH recorded a slight operating gain of approximately $717,000 (0.
In 2008, SPMH lost several key physicians, including primary care physicians and hospitalists, and experienced difficulty recruiting new physicians, partially due to its rural location in Kerrville, TX.
Located in Kerr County, TX, SPMH benefits from being a sole community provider with the nearest competing acute care hospital located 22 miles away.
With the current debt issuance, SPMH will be highly leveraged with maximum annual debt service (MADS) as a percentage of revenues of 7.
Nonetheless, Medicare remains a profitable payor for SPMH due to effective patient utilization, coding, and cost controls.