Orlando (Fla.) Health ended the 2023 fiscal year with an 8.1% operating margin, one of the highest margins among both for-profit and nonprofit health systems.
The health system reported an operating income of $491.3 million in fiscal 2023, a 14.4% improvement from the previous year. It also has an "AA-" rating and stable outlook with Fitch Ratings, reflecting its strong and consistent operating performance and a growing presence in a demographically favorable market.
Here are 10 things to know about Orlando Health:
1. David Strong has served as president and CEO of Orlando Health since April, 2015. Prior to joining the system, Mr. Strong served as president of Raleigh, N.C.-based Rex Healthcare and COO for system affiliations at the University of North Carolina Health Care System in Chapel Hill. He has a Master of Hospital and Health Administration degree from Xavier University in Cincinnati.
2. Leslie Flake, BSN, has served as CFO of the system since June 2022. Ms. Flake previously served as senior vice president of finance at Grand Rapids, Mich.-based Spectrum Health and CFO and chief compliance officer for Phoenix-based Banner Health Medical Group. She has a Master of Business Administration from Brigham Young University in Provo, Utah.
3. The 3,888-bed comprises 16 hospitals and 10 freestanding emergency departments, with another three hospitals and three freestanding EDs under construction. Projects in the works include:
- Orlando Health Lake Mary Hospital, a 124-bed facility, set to open in 2025.
- Orlando Health Wiregrass Ranch Hospital (300-beds) and Orlando Health Lakeland Highlands Hospital (302 beds) projected to open in 2026.
- Freestanding emergency departments in Lutz, North Lakeland and Waterford Lakes are expected to open in 2025.
4. Orlando Health on Nov. 1 became Walmart's first health system partner to provide patients with care not offered at the retailer's clinics. Walmart Health has 48 healthcare centers adjacent to its stores across five states, offering primary, behavioral and dental care. Twenty-three of them are in Florida — the most of any state — with eight in the Orlando market. Under the care coordination agreement, Orlando Health and Walmart Health will work together to coordinate care for the retailer's patients who are admitted to the health system's hospitals or need specialty care.
5. Over the last decade, many parts of Florida have experienced tremendous population growth, with freestanding emergency departments becoming a key part of the health system's growth strategy. "The demand for convenient access to a wider range of choices in healthcare services has been increasing and continues to grow in this area," Matt Taylor, senior vice president of asset strategy at Orlando Health said. The more health systems expand ambulatory and grow in the right locations, the more they can increase market share, which brings more inpatient care back to their hospitals.
6. Florida's population boom, tax-friendly nature and aging population also all contribute to it becoming a key battleground for orthopedics. With this in mind, Orlando Health recently opened Florida's first orthopedic specialty hospital, which is expected to provide care for 250,000 patients a year. The Orlando Health Jewett Orthopedic Institute, a $300 million facility, comprises a 375,000-square-foot downtown complex with a medical pavilion and a full-service orthopedic hospital. Carlos Carrasco serves as president of the institute.
7. Overall, the system has $9.6 billion of assets under management with facilities across Central Florida and Puerto Rico. Orlando Health recently marked its expansion into Puerto Rico after acquiring Sabanera Health Dorado, an acute care hospital. The partnership has grown to include four hospitals and a freestanding emergency department on the island.
8. Orlando Health has cemented various strategic partnerships in recent years, including the acquisition of Florida Medical Clinic on Aug. 1. The Tampa-based multispecialty group has 54 locations and more than 2,000 employees, including over 350 providers. The partners aim to work together to open a hospital in Wiregrass Ranch in Wesley Chapel, Fla.
9. With more than 1,400 physicians and 400 advanced practice providers, Orlando Health Medical Group consists of more than 55 practice specialties. The group has more than 200 practice locations that cover a wide geographic footprint — from as far south as Palm Beach to as far west as Tampa and St. Petersburg, and as far north as Daytona Beach and St. Augustine.
10. The health system has a venture capital arm that focuses on early-stage companies creating disruptive healthcare technologies that align with its strategy. Orlando Health Ventures was founded in 2018 with $20 million and is led by managing director Bobby Helmedag. Notable exits include data analytics provider Health Catalyst, which went public in 2019, and health IT company Phynd, which was bought by healthcare software developer symplr in 2021.