Fort Lauderdale, Florida - Moody's Investors Service upgraded its outlook to positive from stable for North Broward Hospital District, which operates as Broward Health.
Moody's affirmed the Baa2 assigned to the health system's outstanding revenue bonds, reflecting Broward Health's "strong liquidity metrics, modest leverage and conservative capital structure," according to a recent press release issued by Moody's.
Moody’s supplies credit ratings, research and risk analysis for companies across the world.
In tabulating its outlook, Moody’s considered Broward Health’s standing in Broward County. The health system has a “solid primary service area market share as a provider of a full range of medical services including primary care, a children's hospital, Level I and Level II trauma, and its role as a safety net provider.
“Moody's expects [Broward Health] to restore the operating cash flow margin to at least 4.5%, over the coming year, as management continues to address labor pressures and grow enterprise access points, which will strengthen operating cash flow given IGT increases and tax funding,” according to the press release.
“The revised favorable outlook issued by Moody’s underscores our work to sustain and grow our financial agility,” said Alex Fernandez, senior vice president and chief financial officer of Broward Health. “One of our top goals is to have the finances to further enhance the advanced and high-quality care we provide our patients and the community.”
The improved affirmation comes on the heels of S&P Global Ratings’ elevated outlook for the health system. In February 2022, the S&P said its “A-” rating “reflects our expectation that Broward Health will sustain the organizational improvements.”
Broward Health, founded in 1938 and headquartered in Fort Lauderdale, Florida, ranks among the 10 largest public healthcare systems in the United States. Nationally recognized for its focus on high-quality care for the residents of Broward County and beyond, Broward Health boasts five hospitals, two trauma centers, a dynamic academic partnership with Florida Atlantic University, was the county’s first statutory teaching hospital and has an ever-growing graduate medical education program. It includes more than 50 health centers and physician practices covering virtually every healthcare specialty.
Broward Health never stops working toward its mission of Exceptional Care, Extraordinary Compassion and Everyday Excellence. Driven by more than 11,000 talented employees and physicians who deliver care to all patients, regardless of their ability to pay, Broward Health is one of the largest employers in Broward County with an operating budget of $1.6 billion, and annually provides more than $522.6 million of charity and uncompensated care.
For more information about Broward Health, visit BrowardHealth.org.