For the second time in a week, Adena Health System has received positive news from a nationwide credit rating agency. S&P Global Ratings has assigned Adena its A- long-term rating for 2019 revenue bonds to be issued; and has also affirmed its A- long-term rating on Adena’s existing debt, with a stable outlook.
S&P noted its ratings “reflect Adena’s volume and revenue growth over the last few years. This growth reflects the focus of the System’s management team on developing Adena as a regional referral center by strengthening its brand, growing its medical staff, and expanding its local and regional partnerships.”
“We are pleased with S&P Global’s assessment of Adena’s financial position,” said Chief Financial Officer Lisa Carlson. “It’s affirmation of the System’s strategic and financial journey assures us; and should be a sign to our communities and region that Adena is in a good position to provide close-to-home, safe and quality care for our patients now and in the future.”
The series 2019 revenue bonds total approximately $85 million, and includes approximately a $65 million of new money that will be used to fund construction of a major expansion of the Adena Regional Medical Center’s Chillicothe campus. The new hospital addition will house the orthopedic service line as well as robot-assisted surgery, a 20-bed inpatient unit, clinic offices, rehabilitation services, and six operating rooms. 300 additional parking spaces will be added, adjacent to the building, in a multi-parking deck. Investor discussions are currently underway with potential bond buyers, with the sale of bonds expected to begin in June. Construction on the new facility is expected to begin later this year, with opening set for 2021.
Last week, Moody’s Investors Service affirmed its A3 rating with a stable outlook for the Health System.