8 health systems with strong finances

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

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

1. Baylor Scott & White Health has an "AA-" rating and stable outlook with S&P. The health system has an expansive and growing market position in Texas, healthy operating performance and robust cash flow, S&P said. The health system's financial cushion positions it well for its COVID-19 response, according to the credit rating agency. 

2. South Bend, Ind.-based Beacon Health System has an "AA-" rating and stable outlook with Fitch. Beacon is the acute care leader in its northern Indiana service area and has a track record of strong operating margins, Fitch said. The credit rating agency expects Beacon to return to strong operating margins and sustain strong liquidity, despite pressure from the COVID-19 pandemic.  

3. Boston Children's Hospital has an "Aa2" rating and stable outlook with Moody's. The hospital has a preeminent reputation as the top children's hospital in the U.S., robust cash reserves and strong fundraising capabilities, Moody's said. The credit rating agency expects the hospital's exceptional market position and robust liquidity to help it return to pre-COVID-19 levels to support proposed increases in leverage and capital investments.

4. Carle Foundation, a three-hospital system based in Urbana, Ill., has an "AA-" rating and stable outlook with Fitch. The health system has a very strong financial profile, and Fitch expects it to sustain profitable operating margins after managing through the pandemic. 

5. Salt Lake City-based Intermountain Healthcare has an "AA+" rating and stable outlook with Fitch and an "Aa1" rating and stable outlook with Moody's. The health system has a leading market position, low debt levels and strong absolute and relative cash levels, Moody's said. The credit rating agency expects Intermountain will be able to substantially return to and sustain pre-COVID-19 volume levels and margins.

6. Oakland, Calif.-based Kaiser Permanente has an "AA-" rating and stable outlook with Fitch. The rating agency said Kaiser has a leading market share in California and other key markets, and its operational profile is arguably the most emulated model of healthcare delivery in the nation. 

7. New York City-based Memorial Sloan Kettering Cancer Center has an "AA-" rating and stable outlook with S&P. The hospital has robust fundraising capabilities, an advantageous payer mix and has expanded its ambulatory footprint, providing additional revenue diversity, S&P said. 

8. Tacoma, Wash.-based MultiCare Health System has an "Aa3" rating and stable outlook with Moody's and an "AA-" rating and stable outlook with Fitch.. The 10-hospital system has an extensive footprint, a track record of successfully executing on multiple projects and strategic ventures concurrently and good financial management, Moody's said. The credit rating agency expects MultiCare to return to stronger operating results after recovering from disruptions related to the COVID-19 pandemic. 

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