Here are five health systems with strong operational metrics and solid financial positions according to recent reports from Fitch Ratings, Moody’s Investors Service and S&P Global Ratings.
Note: This is not an exhaustive list. Health system names were compiled from recent credit rating reports and are listed in alphabetical order.
1. Froedtert Health has an “AA-” rating and positive outlook with S&P. The system has healthy financial metrics, and its market share in a competitive service area is improving, according to S&P. The debt rating agency expects Froedtert’s financial profile to remain consistent over the next one to two years.
2. St. Joseph, Mich.-based Lakeland Hospitals has an “AA-” rating and stable outlook with Fitch. The health system has a strong financial profile and leading market position, according to Fitch.
3. Mercy Health has an “Aa3” rating and stable outlook with Moody’s. The St. Louis-based system’s balance sheet measures and financial performance have improved in the last three years, according to Moody’s. The debt rating agency expects Mercy Health’s operating margins to continue to improve.
4. Seattle Children’s Healthcare System has an “Aa2” rating and stable outlook with Moody’s. The system has strong balance sheet measures and operating performance, according to Moody’s. The debt rating agency expects Seattle Children’s Healthcare System’s overall profitability to remain strong and its debt coverage measures to improve.
5. Richmond-based Virginia Commonwealth University Health System has an “Aa3” rating and stable outlook with Moody’s. The health system has solid operating performance and a strong credit profile, according to Moody’s. The debt rating agency expects the health system to sustain cash flow margins at close to current levels and maintain its liquidity.