Fitch Upgrades Cape Cod Healthcare’s Credit Rating to ‘AA’

CCB MEDIA PHOTO
Cape Cod Hospital in Hyannis.

HYANNIS – Cape Cod Healthcare received an upgraded credit rating last month from Fitch Ratings, Inc.

The agency rated the health care organization as ‘AA’ – which is up from a previous ‘A’ rating. Fitch reviews CCHC every two years.

Fitch’s assessment of CCHC found a strong financial profile, a dominant market position on Cape Cod, solid operating results and a manageable capital plan.

Fitch also cited the organization’s sizable capital plan, including the installation of a new electronic health record, Epic.

Cape Cod Healthcare CFO Mike Connors said the organization is proud of the recognition by Fitch.

“It’s just a signal of Cape Cod Healthcare’s ongoing strength financially,” said Connors.

“Really, that enables us, by virtue of that financial strength, to continue to reinvest in the clinical programs for the community.”

Connors said the upgraded rating will allow the organization to access debt at reasonable rates if it is needed.

He said the upgraded rating confirms the organization’s consistent financial performance, along with being important from a recruiting standpoint.

“Physicians, other clinicians and nurses really want to be sure that they are coming to an organization that is financially solid and stable,” Connors said.

Fitch also noted CCHC’s recent membership in the Dana-Farber Cancer Care Collaborative. The collaborative provides Cape Cod residents access to Dana-Farber’s protocols, expertise and clinical trials.

“It’s a great program for our community so people can receive international level care right here in our community,” Connors said.

The rating agency also cited CCHC’s next strategic move, to re-establish level III trauma designation, which was lost due to a 2013 change in state regulations.

Connors said CCHC is looking to expand its cardiac care program.

“You’ll see something in the next six to 12 months as we finalize some of those plans,” he said.

CCHC President and CEO Michael Lauf said the organization is extremely pleased to receive the credit upgrade.

“As we approach next year’s 100^th anniversary of Cape Cod Hospital’s founding, it’s gratifying to know that we, the current stewards of this exceptional healthcare system, have ensured that we will enter the next 100 years healthy and strong.”

Lauf said the patient is at the center of everything CCHC does.

“All of our plans for the future include ways to provide better quality, more convenient access to care and more affordability,” Lauf said. “A strong financial profile ensures that we can continue to accomplish these goals.”

CCHC operates Cape Cod Hospital in Hyannis and Falmouth Hospital, the Visiting Nurse Association of Cape Cod, five outpatient centers, four urgent care centers, an employed physician group, a skilled nursing facility, and an assisted living facility. The organization has 121 outpatient access points across the region.