Standard & Poor's reaffirms strong credit rating for Mercy Cedar Rapids - MedQ

Standard & Poor’s reaffirms strong credit rating for Mercy Cedar Rapids

MedQuarter (MedQ) Regional Medical District | February 15th, 2021

Mercy Medical CenterStandard & Poor’s (S&P) Global Ratings has reaffirmed Mercy Medical Center’s “A-” credit rating. The credit analysis factors the financial performance of Mercycare Service Corporation and related organizations, such as Mercy Care Management, Inc.; physician practices; and the Mercy Medical Center Foundation.

The “A-” credit rating reflects Mercy’s improved financial performance for mid-fiscal year 2021.  The S&P outlook is listed as stable, reflecting Mercy’s healthy reserves, even as the pandemic has required more complex processes and increased supplies, equipment and personnel costs.

“The COVID-19 pandemic continues to be a rapidly changing situation that is challenging the healthcare sector across the country,” said Nathan Van Genderen, Mercy executive vice president and chief financial officer. “Even so, Mercy has a strong history of consistently meeting or surpassing budget targets identified through a multi-year strategic plan, as well as its leading market position. We feel confident that we’ll see continued growth in our primary care services, as well as specialty care, such as cardiology, orthopedics, urology, gastroenterology and oncology.”

Van Genderen noted that Mercy has been effective in pursuing more access points for its patients, such as opening the state’s first stand-alone emergency room at Hiawatha Medical Park; expanding its telehealth capabilities; and completing construction on a freestanding ambulatory surgery center.

The MedQuarter is keeping up-to-date on information and resources regarding the pandemic.
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