Bedford (Ind.) Regional Medical Center's bond rating was lowered to CCC from BBB- by Standard & Poor's Corp., which said the downgrade reflects "significant losses from operations and extremely thin liquidity."
In May, the credit-rating agency placed Bedford's rating on CreditWatch with negative implications. The 60-bed hospital lost $4.2 million in fiscal 1995, partly because of losses from capitated contracts, the agency said. In July 1994, the hospital merged with Edgewood Clinic and employed its 30 physicians without changing volume-based incentives, it said.
The agency has a negative credit outlook "because of the continued instability" of managing 7,500 capitated lives and the employed physicians.