Management outline astros game used has consolidated houston astros draws systemservices in areas such as supply ordering, human resources, managed carecontracting, physician recruitment and revenue cycle management, resulting inimproved expense control and efficiency. Excellent financial reporting systemsallow management to actively monitor and control the various business unitsthroughout the organization PHS owns or leases 26 hospitals in five states. PHS maintains strong competitivepositions in most of its service areas, with facilities in Everett, Olympia andSpokane, WA, Anchorage, AK and Missoula, MT holding leading or substantialmarket share. PHS also operates several critical access hospitals and physiciangroups, which help generate increased volumes. Revenue generation and operatingprofitability is well diversified with no region accounting for more than 41% oftotal system revenues in FY 2008. Due to PHS's strong cash flow, liquidity indicators have been less impacted bythe recent investment declines relative to Fitch's 'AA' rated hospital group.
OnMarch 31, 2009 PHS' unrestricted cash and investments totaled $2.43 billion ascompared to $2.55 billion on Dec 31, 2007 astrosdaily . The corporation recently liquidatedcertain equity holdings to mitigate investment volatility with proceeds placedin cash, cash equivalents and U.S jeff bagwell . treasury securities on an interim basis.Thus, liquidity indicators have remained solid relative to Fitch's other 'AA'hospitals with 135.3 days cash on hand (DCOH), a proforma cushion ratio 17.0x,and cash to debt of 143.2% on March 31, 2009 koby clemens . Primary credit concerns are PHS' increasingly competitive service areas and weaksecurity for bondholders lance berkman .
PHS controls and operates facilities in what Fitchbelieves to be competitive markets, most notably in Oregon and SouthernCalifornia baseball tickets . The acquisition of 245-bed Tarzana Medical Center in Los Angeles isexpected to increase PHS' presence in the competitive Southern Californiamarket lance berkman autographed baseball . PHS' business and financial covenants, while not unusual for the ratingcategory, are weak and provide minimal bondholder protection lance berkman wiki . Series 2009bondholders are not expected to be granted a security interest in any revenuesor property of the obligated group nor is debt service reserve expected to becreated houston astros . The 'F1+' rating reflects the sufficiency of PHS' cash and investments positionrelative to its potential funding obligations on the $212.3 million ClackamasCounty series 2003D-G bonds and the $200 million taxable CP program. On March31, 2009 PHS had over $1 billion of cash, cash equivalents and fixed incomeinvestments. Based on Fitch's rating criteria related to self-liquidity (seeFitch's report 'Guidelines for Rating Variable Rate Demand Bonds and CommercialPaper Issued with Internal Liquidity' dated March 7, 2006), PHS' position ofeligible cash and investment available for same-day settlement easily exceedsFitch's 1.25x requirement to cover the maximum tender exposure on any givendate.
PHS provides Fitch regular liquidity reports that are used to monitor itscash and investment position relative the corporation's total self-liquidityexposure The Rating Outlook remains Stable brad ausmus wife . PHS is among the strongest 'AA' credits inFitch's non-profit health care portfolio jeff bagwell . Fitch believes that PHS' strongmanagement practices, geographic dispersion of its operations and solid servicearea demographics will continue to produce and sustain strong financialperformance koby clemens . PHS is composed of 26 hospitals and other related health care entities and had$7 billion in total operating revenue in fiscal 2008 . Headquartered in Seattle,Washington, the system has core operations in Washington, Oregon, Alaska,California and Montana. PHS posts annual audited financial statements andquarterly unaudited financial statements on its web site, ,which is viewed positively by Fitch. Quarterly information includes balancesheet, income statement, cash flows, management discussion and analysis and someutilization statistics.
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