Ducker Worldwide in the News: Lender questions hospital's ability to pay off bond debt
Jun 20, 2012
Notice from Comerica comes 8 days after longtime Crittenton CEO suddenly retires
The Detroit News
By Karl Henkel and Melissa Burden
The sudden retirement of Crittenton Hospital Medical Center's longtime CEO earlier this month came eight days after the Rochester hospital received a lender's notice that it had fallen below a benchmark on its ability to make debt payments on several bonds, according to financial documents.
The independent Rochester hospital — which lost $8.3 million in 2011, according to an audit dated in late May — received a waiver letter May 29 from Comerica Bank warning that its ratio of cash to make payments on its debt after expenses fell short of requirements on bonds issued through the state of Michigan. The waiver means the bank isn't now holding Crittenton to the requirement.