American Day Treatment Centers, an Annapolis, Md.-based provider of freestanding partial hospital centers, has expanded into contract management with two agreements in Florida. American Day Treatment will manage hospital-based psychiatric day-treatment programs for Florida Hospital Medical Center in Orlando and South Shore Hospital and Medical Center in Miami Beach. The privately held company operates 13 partial hospital programs in five states.
Surgical Care Affiliates, the nation's second-largest outpatient surgery center chain, has agreed to develop a surgery center with Dallas-based American Medical International in San Luis Obispo, Calif. The center will be built on the campus of AMI Sierra Vista Regional Medical Center and will merge Surgical Care's San Luis Obispo Surgery Center with the hospital's outpatient surgery department. Nashville, Tenn.-based Surgical Care operates 65 centers in 22 states.
Fitch Investors Service has released an analysis that shows healthcare bond insurance premiums have remained relatively unchanged while premiums in other sectors have shown sharp declines. The special report found that bond insurance premium rates for issuers of leases and other tax-backed bonds, general obligation bonds and municipal utility bonds have dropped significantly, with double-digit percentage changes. But in healthcare, average premium rates for the first half of 1994 remained steady at 81 basis points, the same as in 1993. In other words, healthcare providers paid a premium of 0.81 of 1% of total debt service. "The bond insurers see greater risk in the healthcare area. Therefore, they're not willing to go quite as low on premium rates," said David Litvack, a senior vice president at Fitch, a New York-based credit-rating agency.
Cable Healthcare Corp., Austin, Texas, has signed a five-year agreement with American Healthcare Systems, a San Diego-based alliance of not-for-profit hospitals in 47 states. Cable Healthcare provides interactive information, education and entertainment services to hospitals. Terms weren't disclosed.
Texas Children's Hospital has received upgrades on its revenue-bond ratings from two New York-based credit-rating agencies. Moody's Investors Service lifted the bond rating to Aa from A1; Standard & Poor's Corp. increased the rating to AA from A+. Both agencies credited the Houston-based hospital's excellent liquidity for contributing to the upgrade. Moody's rating affects a total of $73.3 million of debt, while Standard & Poor's rating affects $14.8 million. The hospital's broad array of tertiary services and a close medical school affiliation make Texas Children's a dominant player in a competitive market, Moody's said.