Ryan Nicol
A major South Florida hospital chain is in better financial health after securing a long-term ratings boost for its bonds.
S&P Global Ratings is now rating Broward Health’s 2017B revenue bonds to an “A+,” increasing the health network two notches from its previous “A-” rating.
“This substantial, two-jump upgrade in our S&P rating highlights our dedication to financial excellence and our resilience in a constantly evolving health care environment, particularly in a time when many health systems are facing challenges,” said Shane Strum, President and CEO of Broward Health.
“It not only reflects our robust financial strategies and adaptability, but also demonstrates our resilience and ability to thrive in a competitive and often turbulent health care environment.”
S&P Global Ratings cited volume growth and operational efficiencies in making the decision. The change is especially notable amid volatility in the economy, with S&P recently issuing a “stable but shaky” forecast for health care organizations in particular.
“The upgrade reflects the S&P Global Ratings’ view of Broward Health’s strengthened enterprise profile, coupled with the continued trend of solid financial performance and improved balance-sheet metrics. The outlook additionally reflects Broward Health’s strong balance sheet and very favorable debt profile,” according to S&P.
Stephen Infranco, a credit analyst at S&P Global Ratings, explained what the ratings boost means for Broward Health’s financial future.
“The stable outlook reflects our expectation that Broward Health will continue to generate solid operating margins, supported by its position as an essential health care provider in Broward County, unused tax millage capacity which provides flexibility and ongoing implementation of operational efficiencies and strategic initiatives,” Infranco said.
Broward Health is headquartered in Fort Lauderdale and is one of the 10 largest health care systems in the nation, employing more than 11,000 people.
“We are incredibly proud of this upgraded rating, as it underscores our strong financial health and strategic planning,” said Alisa Bert, Interim Chief Financial Officer and senior vice president of financial operation at Broward Health.
“This achievement highlights our commitment to operational excellence and positions us to invest in innovative health care solutions that will enhance the overall experience for our patients and their families.”
