Moody’s upgrades Broward Health’s bond rating

by | Sep 15, 2023

  • Moody’s Investors Service upgraded Broward Health’s revenue bond rating from Baa2 to Baa1 due to strong financial performance and strategic initiatives.
  • The upgrade was driven by Broward Health’s ability to maintain positive margins, diversify revenue sources, and expand into secondary business ventures like retail pharmacy.
  • For the current Fiscal Year, Broward Health anticipates an overall patient revenue of $6.12 billion.

Moody’s Investors Service announced on Friday that it issued an upgrade in the revenue bond rating for Broward Health Baa2 to Baa1, indicating strong financial performance and strategic initiatives.

Per Moody’s, Broward Health’s ability to maintain positive margins and liquidity, supplemented by sustained revenue diversification led to the rating elevation. Moody’s directly cited the health network’s foray into retail pharmacy and other lines of secondary business ventures in its assessment.

“[Broward Health’s] essentiality as the county’s safety net provider and its tertiary service array will continue to drive good patient demand and volumes, further undergirding its essentiality,” Moody’s reported. “The stable outlook reflects the likelihood that operating cash flow margins will remain in the mid-single digit level and that balance sheet measures will remain solid as the North Broward Hospital District deploys capital to grow and re-invest in its assets.”

For the current Fiscal Year, Broward Health in its operational budget anticipates patient revenue of $6.12 billion, though predicts an operational loss of $250 million. To bridge the financial gap, it is relying on a $250 million injection from non-operating revenue and tax income.

The hospital has also committed to renovating its facilities and equipment, allocating $128.2 million for upgrades aimed at improving patient care and overall efficiency. Broward Health is also dedicating $650 million to community benefit costs.

“Our focus on enhancing our health care services has resulted in improved financial performance and increased confidence in our organization,” said Alisa Bert, interim chief financial officer and vice president of financial operation at Broward Health. “We are pleased that our diligent efforts in managing our financials, reducing debt, and improving operational efficiency have resulted in an improved bond rating.”


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