Moody's Releases Bond Rating for Elmhurst Memorial Healthcare; Did Merger Help?

Moody's Investors Services has affirmed Elmhurst Memorial Healthcare's Baa2 long-term rating. Despite the hospital's merger with Edward Hospital and Health Services in July, Moody's continues to give the hospital a negative outlook in its rating released Tuesday, Aug. 13. The rating affects the hospital's nearly $500 million in outstanding debt.

Edward Hospital is rated higher, at A2, as the hospital has a history of "strong operating margins."

Said Moody's: "Edward's market reach and management acumen will likely provide meaningful benefits to EMHC over time."

The continued negative outlook for EMHC is due to "significant continued operating challenges and very high and aggressive debt and swap structure, and that the potential synergies with Edward have yet to materialize."

Read Moody's full report here.