Overlake’s Strong Financial Performance Earns Ratings Increase

Fourth Increase in Two Years signals Strong Health of Organization

BELLEVUE, Wash.--(BUSINESS WIRE)--For the fourth time in the past two years, Overlake Hospital Medical Center earned financial ratings increases from both major financial ratings services, with the latest to “A-” stable from “BBB+” from Standard and Poor’s Ratings Service, quoting “Overlake’s strong operating performance, robust profitability and improved investment performance over the past year.”

“Overlake’s strong operating performance, robust profitability and improved investment performance over the past year.”

Specifically, over the past two years, Overlake has received a three-notch upgrade from Moody’s and a two-notch upgrade from S&P, resulting in its current ratings of A3/A-.

“We’re extremely pleased with our solid financial performance, especially given the ongoing economic challenges here in the Northwest and throughout the nation,” said Gary McLaughlin, vice president of finance and chief financial officer. “Hospitals and healthcare providers across the country have seen many more financial downgrades than upgrades in recent years, so receiving this increase was a powerful statement about Overlake’s financial health and strength.”

The Standard and Poor’s report says, “The rating action reflects our view of Overlake’s continued strong financial performance and further improvement in balance sheet metrics. Since we revised Overlake’s bond rating outlook to positive in February 2010, the organization has continued to post what we consider very solid margins and sound debt service coverage.”

Standard and Poor’s evaluation also noted Overlake’s strong market position in a growing service area, its 20-year service agreement to provide Group Health patients on the Eastside with inpatient and emergency services, its new and updated facilities as well as the hospital’s effective management team that shows detailed strategic planning efforts including a comprehensive financial forecast that is updated regularly.

McLaughlin also noted that the hospital’s secure financial footing will help Overlake gain traction on several key initiatives currently underway including expanding its physician and medical clinic network, growing its cardiac, cancer, and surgical service lines, as well as implementing a fully integrated electronic medical record system and establishing an IT infrastructure to connect with physicians in the community.

To interview Overlake’s CFO Gary McLaughlin, or for more information about these ratings increases, please contact Lee Keller at 206-799-3805.

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