13 health systems with strong finances

Here are 13 health systems with strong operational metrics and solid financial positions, according to recent reports from Moody's Investors Service and S&P Global Ratings.

Note: This is not an exhaustive list. Health system names were compiled from recent credit rating reports and are listed in alphabetical order.

1. Downers Grove, Ill.-based Advocate Health Care has an "Aa2" rating and stable outlook with Moody's. The health system has a strong market position, healthy liquidity, moderate leverage and good debt metrics, according to Moody's.

2. Morristown, N.J.-based Atlantic Health System has an "Aa3" rating and stable outlook with Moody's and an "AA-" rating and stable outlook with S&P. The system has stable operating performance, balance sheet growth and a favorable market position, according to Moody's.

3. Dallas-based Baylor Scott & White Health has an "Aa3" rating and stable outlook with Moody's. The health system has strong cash flow margins and a favorable business position as the largest nonprofit health system in Texas, according to Moody's.

4. Milwaukee-based Children's Hospital and Health System has an "Aa3" rating and stable outlook with Moody's. The system has a strong balance sheet and is the dominant provider of tertiary and quaternary pediatric services in southeastern Wisconsin, according to Moody's.

5. Indianapolis-based Indiana University Health has an "Aa2" rating and stable outlook with Moody's. The system has healthy margins and a strong market position, according to Moody's.

6. Rochester, Minn.-based Mayo Clinic has an "Aa2" rating and stable outlook with Moody's. Mayo has an excellent clinical reputation and diversified revenue across multiple locations, states and types of hospitals, according to Moody's.

7. Mercy Health in St. Louis, Mo., has an "Aa3" rating and stable outlook with Moody's and an "AA-" rating and stable outlook with S&P. The health system has solid debt service coverage and strong balance sheet metrics, according to Moody's.

8. Chicago-based Northwestern Memorial HealthCare has an "Aa2" rating and stable outlook with Moody's. The system has a prominent and growing market position in the Chicago region, a strong investment position, good margins and manageable leverage, according to Moody's.

9. San Diego-based Sharp HealthCare has an "Aa3" rating and stable outlook with Moody's. The system has strong balance sheet measures and a fundamentally stable and strong strategic position, according to Moody's.

10. Stanford (Calif.) Health Care has an "Aa3" rating and stable outlook with Moody's. The system has a strong market position as one of two major academic medical centers in the Bay Area, has a reputation for clinical excellence and research, and is in a service area with strong population growth and high wealth levels, according to Moody's.

11. Iowa City-based University of Iowa Hospitals & Clinics has an "Aa2" rating and stable outlook with Moody's. The health system has a broad market with growing patient volumes and geographic reach for its high-acuity services. Moody's expects the health system's expense control initiatives to continue to gain traction through fiscal year 2018. 

12. Philadelphia-based University of Pennsylvania Health System has an "Aa3" rating and stable outlook with Moody's. The health system has a strong market position, solid operating margins and limited debt burden, according to Moody's.

13. Yale New Haven (Conn.) Health System has an "Aa3" rating and stable outlook with Moody's. The system has a leading market position in Connecticut, solid liquidity, moderate capital needs and manageable leverage, according to Moody's.

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Editor's Note: This article was updated Jan. 24 to reflect Mercy Health is based in St. Louis, Mo. 

 

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