Moody’s upgrades Orlando Health’s rating
ORLANDO, FL (March 31, 2016) – Today, Orlando Health announced that Moody’s Investment Services has upgraded the organization’s credit rating from A3 to A2 with a stable outlook. Moody’s cited the organization’s second consecutive year of improved financial performance, a material improvement in debt service, and increasing market share as its reasons for the action.
“We are pleased to receive the rating upgrade,” said Bernadette Spong, CFO, Orlando Health. “It is a tremendous honor to be recognized by Moody’s for our strong performance.”
Since the last Moody’s rating in January 2015, Orlando Health’s financial performance has significantly strengthened. For FY 2015, the organization’s income from operations increased by 42.1% over the previous year, net patient service revenue, less the provision for bad debts, increased 9.3%, and unrestricted cash and investments were up 20.1%. Combined admissions and observation cases increased by 4.0%, while the case mix index increased from 1.50 to 1.52.
In addition to positive changes in the organization’s financial performance, Orlando Health also established a solid and experienced new leadership team. David Strong was appointed as President and Chief Executive Officer in April 2015 and has built the team to include Jamal Hakim, MD, Chief Operating Officer, and Bernadette Spong, Chief Financial Officer.
“Orlando Health’s market position is strong and strengthening,” said David Strong. “We are pleased with our progress in 2015, which was reflective of many aspects of performance.
In addition to the rating upgrade for Orlando Health, Moody’s raised the outlook for South Lake Hospital, an Orlando Health affiliate, from stable to positive while maintaining its Baa1rating.
About Orlando Health
Orlando Health is a $2.3 billion not-for-profit health care organization and a community-based network of physician practices, hospitals, and outpatient care centers throughout Central Florida. The organization is home to the area’s only Level One Trauma Centers for adults and pediatrics and is a statutory teaching hospital system that offers both specialty and community hospitals. More than 2,000 physicians have privileges at Orlando Health, which is also one of the area’s largest employers with more than 15,000 employees who serve nearly 2 million Central Florida residents and more than 4,500 international patients annually. Additionally, Orlando Health provides nearly $235 million in support of community health needs. More information can be found at About Us.
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