THE JEWISH NEWS

13 This FIR
Week's Top Stories

Taking Stock In Bonds

Sinai continues its financial recovery.

RUTH LITTMANN STAFF WRITER

D

emonstrating faith in the
future of Michigan's only
Jewish hospital, in-
vestors gobbled them up
like steaming holiday dinners.
When Sinai Hospital's tax-
exempt bonds hit financial
markets on Nov. 15, some 20
institutional buyers — includ-
ing Dean Witter, John Hancock
and Chase Manhattan —
bought all $75 million for their
mutual funds.
Bond sales began at 9
a.m. that Wednesday. Two-
and-a-half hours later, the
hospital had secured the fi-
nancing it needs to embark
on a multi-year project of ex-
pansion, renovation and
debt liquidation.
The bonds will help the
42-year-old Sinai expand its
over-utilized emergency
room, as well as reconfigure
its existing facilities for la-
bor, delivery, recovery and
perinatal care. Along with
other renovations, nursing
units will be consolidated
and intensive care units re-
located. Renovations are
scheduled for completion by
the year 2000.
Although officials at the hos-
pital consider this massive un-
dertaking critical to staying on
top of trends in medical care,
the sale of bonds is of particu-
lar importance because, four
years ago, Sinai reported a $10
million annual loss and grap-
pled with merging, moving or
closing its doors.
For leaders of Sinai, like
CEO and President Phillip
Schaengold, the capital mar-
ket's enthusiasm demonstrates
a healthy confidence in the hos-
pital's future.
"We went out for $70 million
originally, but the bond issue
was oversubscribed. There
were more investors interest-,
ed than we had anticipated,"
Mr. Schaengold says.
The uninsured bonds, issued
by the Michigan State Hospi-
tal Finance Authority, mature
in 1 to 30 years. They offer up
to a 6.875 percent tax-free
yield, which the hospital will
pay on a semiannual basis each
Jan. 1 and July 1, starting next
summer. The bonds are not
callable for 10 years.
Moody's, a bond-rating
agency based in New York, as-
signed Sinai a "Baa" rating.

Fitch gave the hospital a
"BBB." Both ratings are in-
vestment-grade, though aver-
age.
"The institution's historical
financial performance wasn't
the best, but it has improved
significantly and continues to
improve. Liquidity is not ex-
tremely strong, but it's ade-
quate and Also improving," says
Kay Sifferman, a senior ana-
lyst with Moody's.

Philip Schaengold

The hospital's credit rating
also takes into account the fact
that, with the bond issuance,
Sinai nearly triples its out-
standing debt load from $25.5
million in 1995 to approxi-
mately $75 million, which must
be repaid by 2026. Neverthe-
less, the credit rating is higher
than it was during Sinai's trou-
bled years, 1986 to 1991.
Since that time, Sinai has
pulled in net profits of $8.5 mil-
lion (1992), $13 million (1993),
$3.5 million (1994) and $9.1
million (1995).
Moody's also looks at a hos-
pital's strategic planning and
success at following trends in
the health-care business. Ms.
Sifferman says Sinai's involve-
ment with the Health Affiance
Plan and other programs of
managed care have paid off, as
has its formation of a Physician
Hospital Organization (PHO),
which demonstrates partner-
ship between the institution
and its doctors.
Ms. Sifferman says demo-
graphics also came into play in
determining Sinai's credit rat-
BONDS page 10

Groves students explore the literature of the atrocities.

DAVID ZEMAN STAFF WRITER

Story on page 14

Director Wanted

The JCC begins the long process of looking for an executive director.

JENNIFER FINER STAFF WRITER

H

anging in the hallway
that leads to the exec-
utive offices at the
Maple-Drake Jewish
Community Center
are photos of the Cen-
ter's leadership since
the agency's Detroit inception.
Under the executive director
heading hang photos of Samuel
Levine, 1928-1932; Irwin Shaw,
1951-1977; and Morton Plotnick,
1977 (Mr. Plotnick left the posi-
tion in March 1995).
Curiously absent is the picture
of current Executive Director
Leah Ann Kleinfeldt.
Even if it is added to the wall,
it will soon be succeeded by an-
other.

Ms. Kleinfeldt, the Center's di-
rector for nine months, is stepping
down from the position for per-
sonal reasons. She would not pro-
vide any further explanation.
Ms. Kleinfeldt will remain in
her job until .a newly formed
search committee finds a succes-
sor.
"This was a very difficult deci-
sion to make," Ms. Kleinfeldt said.
"I love what I do and I will work
with whomever the community
brings in. I cannot expand on my
reasoning except to say it's per-
sonal."
Once an executive director is
found, Ms. Kleinfeldt will assume
her former position as the assis-
tant executive director of the JCC.

Last March, when Ms. Kleinfeldt
took over day-to-day operations of
the JCC, Dr. Plotnick, the Cen-
ter's executive director for 19
years, became the executive vice
president/director, responsible for
generating additional JCC rev-
enue.
Dr. Plotnick is not being con-
sidered to return to the executive
director position, according to Har-
ry M. Eisenberg, JCC first vice
president and chair of the search
committee.
Those involved with the search
process say it could take between
six months and a year.
The committee, expected to
hold its first meeting today, con-
DIRECTOR page 10

