Written by Lee Farmer
Most hospitals and health systems have been financially challenged by the coronavirus pandemic, and many are still struggling to recover. VCU Health endured similar financial difficulties, but recovered quickly, as seen in the latest bond rating announcements from two of the nation's largest credit rating agencies.
Moody's and Standard & Poor's (S&P) recently released scores for health systems across the United States to identify high-quality, growing hospitals with strong financial portfolios. VCU Health received superior bond ratings of Aa3 from Moody's and AA from S&P. Both of these rankings mean the same thing to financiers. This means VCU Health is in good financial shape and has growth potential.
However, for healthcare professionals and patients, this assessment has a deeper meaning.
“This recognition not only means we are financially strong, but it is also a testament to VCU Health's continued commitment to providing the highest level of care to each patient,” said VCU Health Interim CEO and CEO , said Marlon Levy, MD, interim vice president of VCU Health. VCU Health Sciences. “We have a strong reputation at the bank and a strong reputation in the community. We are forever grateful to both team members.”
For a health system in central Virginia that is expanding its facilities and experiencing increased demand for its services, this assessment will allow it to make more improvements, faster. Additionally, a high rating is an indicator of a strong market presence, unique service offering, and a strong management team. At VCU Health, our patients and their families trust us to provide excellent care across a variety of specialties.
These solid, strong bond ratings ensure VCU Health is in the top 20% of health systems, according to Moody's rating hierarchy. Representatives in S&P's latest review say their findings show a health system with good strategic investments and building partnerships that support its position in the community as the only academic medical center. Stated.
“This latest rating is a direct result of the undeniable efforts of all of VCU Health's employees,” said James Siegel, VCU Health's senior vice president and chief financial officer. “Our dedicated leadership team, staff, providers and clinicians have navigated historic challenges over the past four years. This recognition is a measure of success.”
In determining this latest rating, S&P noted several positive characteristics that move the needle in the right direction. In particular, S&P reviewed balance sheet ratios, particularly unrestricted reserves for long-term debt, leverage, and debt burden. They also observed a “significant improvement” in operating results during the first six months of the current fiscal year and expressed full confidence that VCU Health will stay within budget for the full year.
VCU Health's financial position continues to strengthen due to capital improvements and expansion of its footprint in the community. Health systems are working to strengthen service lines so more patients have access to the highest quality care closer to where they live or work.