DETROIT – Henry Ford Health System’s A3 bond rating was affirmed and its outlook upgraded to stable by the credit ratings agency Moody’s Investor Services.
The bond rating was assigned to Henry Ford’s $670 million of outstanding bonds issued through the Michigan State Hospital Finance Authority.
“We are pleased with the outlook upgrade and affirmed bond rating by Moody’s,” says Edward Chadwick, chief financial officer for Henry Ford Health System. “This reflects our solid growth, focused cost reductions and strong market position as a high quality, fully integrated health system. These gains have us well positioned for further improvement in our overall operating performance, and will allow us to continue to maximize our positive impact on the communities we serve.”
In reaffirming the A3 bond rating, Moody’s says it reflects the health system’s “sizeable and fully integrated health care operations” and “low debt burden.”
“The outlook revision to stable from negative reflects Henry Ford’s improved operating results in fiscal year 2014 and interim fiscal year 2015 that should reduce financial leverage and stabilize performance particularly given the completion of the system’s major information technology installation, Medicaid expansion and cost reduction measures,” Moody’s says.
In 2014, Henry Ford reported total revenues of $4.7 billion, an increase of $195 million, or 4 percent, from 2013. Net patient service revenue increased $77 million, or 4 percent, due to outpatient volume growth and growth in such ancillary services like pharmacy. Henry Ford reported $27.8 million in net income for 2014.
About Henry Ford Health System
Henry Ford Health System, one of the largest and most comprehensive integrated U.S. health care systems, is a national leader in clinical care, research and education. The system includes the 1,200-member Henry Ford Medical Group, five hospitals, Health Alliance Plan (a health insurance and wellness company), Henry Ford Physician Network, a 150-site ambulatory network and many other health-related entities throughout southeast Michigan, providing a full continuum of care. In 2014, Henry Ford provided $317 million in uncompensated care. The health system also is a major economic driver in Michigan and employs more than 23,000 employees. Henry Ford is a 2011 Malcolm Baldrige National Quality Award recipient. The health system is led by CEO Nancy Schlichting. To learn more, visit HenryFord.com