Clarian Health Partners, Indianapolis, is taking a financial risk with its ambitious capital program, Moody's Investors Service warned. The program includes plans to keep up with competitors by building two hospitals in joint ventures with physicians, Moody's downgraded Clarian to A1 from Aa3 just as the system plans to issue $500 million of bonds, nearly doubling its debt. Moody's cited the greater debt, along with dependence on future cash flow to fund about half of Clarian's $1 billion capital program through 2007, more market competition, revenue-sharing with physicians and the possibility of cannibalizing existing services. It said Clarian will not be able to defer larger projects without compromising market share. -- by Mary Chris Jaklevic
Ind. system's capital campaign has risks: Moody's
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