Financial operations of Marin General Hospital have improved since FY19 and FY20, when maximum annual debt service was covered 1.03x and (0.22x), respectively, Debtwire analysts wrote (see table 1). In FY21, coverage increased to 1.87x and continued to improve further, to 3.66x in 3Q22 from 1.55x in 3Q21. The borrower’s fiscal year ends 31 December.
The reason for the decline in days cash on hand (DCOH) to 58 in 3Q22 from 94 DCOH in 3Q21 is not readily apparent, as neither a management discussion and analysis nor working capital statement was provided for the interim statements.
Marin General Hospital and Prima Medical Foundation, which operates a number of health care clinics, are the only members of the obligated group. The borrower operates but does not own Marin General Hospital, which is leased from the Marin Healthcare District—a governmental entity—through 1 December 2045.
Marin General Hospital is located in Marin County (CA), immediately north of the City and County of San Francisco.
The borrower’s most recent bond issues were tax-exempt Series 2018A and taxable Series 2018B, sold in respective amounts of USD 91.1m and USD 66.8m, by the California Statewide Communities Development Authority.
Bonds are secured by gross revenues of the obligated group.
Sample trade data for term maturities of the Series 2018A and 2018B bonds is presented in Table 2 below.
Bond ratings are noted in Table 3.
