Standard & Poor's Corp. has lowered its A+ long-term debt rating and A-1 short-term rating on Saint Francis Hospital in Charleston, W.Va., to CCC, predicting a possible default by the hospital within two to three years. The downgrade to non-investment-grade status reflects substantial financial and operational deterioration, the New York-based rating agency said. The CCC applies to a total of $1.3 million of debt. Standard & Poor's also raised its rating on the obligated group of Farmington Hills, Mich.-based Mercy Health Services, formerly known as Sisters of Mercy Health Corp., to A from A-. The upgrade reflects sustained improvement in profitability and liquidity, especially at Mercy Hospital in Detroit, the rating agency said. Mercy Health Services has $460 million in outstanding long-term debt. It's obligated group includes 23 hospitals in 12 divisions throughout Michigan and Iowa. Moody's Investors Service, meanwhile, also upgraded its rating on Mercy Health Services to A1 from A. The rating affects $12.4 million of debt. The New York-based rating agency also downgraded Sequoia Hospital District in Redwood City, Calif., to Baa1 from A, affecting $54.4 million of debt.
Meditrust, Needham Heights, Mass., has closed $32 million in mortgage financing investments secured by nine long-term-care facilities with a total of 1,080 beds and a 150-bed retirement and assisted-living facility. The facilities, in Missouri, Nebraska and Texas, are operated by private companies. A Meditrust spokeswoman said the real estate investment trust's new policy is not to reveal the names of private operators. Meditrust has investments in 271 healthcare facilities in 34 states.
Pharmacy Management Services, a Tampa, Fla.-based medical cost-containment company, said it is considering acquisition offers from several potential buyers on the heels of its most profitable quarter. In the first quarter of fiscal 1995 ended Oct. 31, PMS posted net income of $1.9 million, a 150% increase compared with the same period in 1994, the company said. Revenues for the quarter rose 11% to $30.5 million. PMS and its subsidiaries provide medical cost-containment and managed-care services for workers' compensation claimants and payers nationwide.
Apogee, a King of Prussia, Pa.-based provider of mental health services, has acquired Metropolitan Psychiatric Group, a multispecialty mental health group practice with 150 clinicians, 60 administrative personnel and 17 facilities throughout the District of Columbia, Maryland and Virginia. Financial terms of the deal weren't disclosed, but Apogee said the two organizations have combined annual revenues of $55 million. The acquisition increases the company's size by more than one-third. Apogee currently provides mental health services to more than 950 long-term-care facilities and 63 outpatient clinics in 13 states.
National Health Investors has provided a $15 million mortgage to All Seasons Living Centers, Seattle, for six nursing homes in the state. Integrated Health Services, Owings Mills, Md., will manage the properties and provide $1.2 million for immediate capital upgrades and rehabilitation, plus $1 million for working capital. NHI President Andy Adams said nursing homes in Washington historically have had occupancy rates exceeding 90%. NHI, a Murfreesboro, Tenn.-based real estate investment trust, has investments in 236 facilities in 25 states.