Physician Alignment: WCHN includes Western Connecticut Medical Group, P.
Because of favorable market conditions, WCHN is moving forward with the refunding of its series G bonds.
WCHN has a strong referral network through its growing employed physician base, which totaled 224 physicians as of August 2011.
During 2011, WCHN assumed a controlling financial interest in WCMG, with the result that WCMG will be consolidated into WCHN's financial statements for the fiscal year ending September 30, 2011 and thereafter.
Fitch believes WCHN has the potential for better operational performance due to its strong market position in a good service area and its platform should enable the system to perform well under an accountable care environment.
WCHN is aligned with over 200 multispecialty physicians with over 19 clinics in its service area with plans to increase and expand the number of clinic locations.
With this bond issue, WCHN will build a new bed tower and expanded parking garage at Danbury Hospital.
From the bond issue, WCHN will receive $11 million for reimbursement of prior capital expenditures.
The Stable Outlook reflects Fitch's expectation that WCHN will realize its cost reduction initiatives and meet its fiscal 2011 budget.