Thursday, May 24, 2018
Standard & Poors (S&P) has raised Beaumont Health's long-term credit rating to 'A+' from 'A' with a stable outlook.
Beaumont's highlighted strengths include:
- growing cash on hand to more than 180 days while the system continues to spend routine and strategic capital
- continued leading market share in a highly competitive area
- a leadership team that has set a course for the system to maintain its leadership while building in flexibility for changes anticipated in the health care industry
The A+ S&P rating confirms Beaumont is financially strong and secure. This financial strength allows us to serve our patients and families better as a leading health care provider, John Kerndl, Beaumont executive vice president and chief financial officer, said.
S&P noted that regardless of the decline in inpatient utilization, Beaumont Health's overall revenue continued to grow. Details regarding improvements in information technology were cited as positive as was the ability to spend capital and work to invest in employees through the administration of market adjustment programs. S&P also noted Beaumont's debt is manageable, which is another positive citing.
According to the report, "Beaumont Health has put in place strategies to operate the system as a highly aligned organization through its hospitals, physicians, and other access points. Beaumont Health is focused on further clinical consolidation and believes that this will help position the system for the changes expected in the industry. With the successful implementation of its strategies contributing to sustainable cash flow and the use of previously issued debt, Beaumont Health has been able to invest in its facilities and new ventures, including the proton therapy center, while improving its financial flexibility.