FORT LAUDERDALE, Fla. - 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, providing service for more than 85 years, is a nationally recognized system in South Florida that offers world-class healthcare to all. The Broward Health system includes the statutory teaching hospital Broward Health Medical Center, Broward Health North, Broward Health Imperial Point, Broward Health Coral Springs, Salah Foundation Children’s Hospital, Broward Health Weston, Broward Health Community Health Services, Broward Health Physician Group, Broward Health Urgent Care, Broward Health International, and Broward Health Foundation. For more information, visit BrowardHealth.org.