THR Sees Financial Repercussions Of Ebola Diagnoses

Texas Health Resources, the 14-hospital system in control of Texas Health Presbyterian Hospital Dallas where Thomas Eric Duncan died of Ebola and transmitted the virus to two of the nurses treating him, is starting to see the financial repercussions of the event and the surrounding attention it has brought to the network, according to a report by Modern Healthcare. Texas Health Presbyterian Hospital Dallas is the second-largest member of THR’s system and contributed 17 percent of system net patient revenue last year.

Moody’s Investors Service revised its outlook on THR’s long-term debt on Thursday from “positive” to “developing,” stating that Ebola-related events have created financial uncertainty at Presbyterian. It referred to the recent Ebola cases as a “material distraction for management,” acknowledging that the outbreak tapped into resources that could’ve otherwise been available for growing both the hospital and the system.

THR reported total revenue in excess of $4.3 billion in 2013 and currently has enough debt-service coverage and a liquidity profile strong enough to absorb some of the negative pressure. THR reported total net assets of $3.9 billion in 2013.

 

Posted in Morning Rounds, News.