The assignment is a result of several factors, including OU Medicine’s favorable market position, close ties with the University of Oklahoma, healthy cashflow margins and a strong management team that Moody’s expects will effectively lead the system through the transition to a nonprofit healthcare system. Moody’s also acknowledged the health system’s increasingly competitive market, high leverage metrics, modest liquidity and high reliance on Medicaid and self-pay payers.
The outlook is stable, reflecting Moody’s expectation that OU Medicine will maintain strong margins during the transition period because of the tenured management team and well-planned transition strategy.
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