By Jennifer Smith
FORT LAUDERDALE, FLORIDA – Broward Health is pleased to announce that S&P Global Ratings has upgraded its long-term rating on Broward Health’s 2017B revenue bonds from ‘A-‘ to ‘A+’. Jumping two ratings at S&P is a rare achievement, particularly in today’s healthcare economic landscape, and underscores significant improvements in Broward Health’s financial stability and operational performance. The outlook remains stable.
“The upgrade reflects the S&P Global Ratings’ view of Broward Health’s strengthened enterprise profile, coupled with the continued trend of solid financial performance and improved balance-sheet metrics. The outlook additionally reflects Broward Health’s strong balance sheet and very favorable debt profile,” according to S&P, which attributed these improvements to volume growth and operational efficiencies.
“This substantial, two-jump upgrade in our S&P rating highlights our dedication to financial excellence and our resilience in a constantly evolving healthcare environment, particularly in a time when many health systems are facing challenges,” said Shane Strum, President & CEO of Broward Health. “It not only reflects our robust financial strategies and adaptability but also demonstrates our resilience and ability to thrive in a competitive and often turbulent healthcare environment.”
The double upgrade comes at a time when S&P has suggested a “stable but shaky” forecast for healthcare organizations “amid uneven recovery and regulatory challenges.” In its December 4, 2024 “RatingsDirect” summary, S&P indicated that “sector uncertainty persists as a subset of providers continues to work toward improved and stable cash flow,” an issue Broward Health is mindful of but not experiencing.
“The stable outlook reflects our expectation that Broward Health will continue to generate solid operating margins, supported by its position as an essential health care provider in Broward County, unused tax millage capacity which provides flexibility and ongoing implementation of operational efficiencies and strategic initiatives,” said Stephen Infranco, credit analyst at S&P Global Ratings.
“We are incredibly proud of this upgraded rating, as it underscores our strong financial health and strategic planning,” said Alisa Bert, interim chief financial officer and senior vice president of financial operation at Broward Health. “This achievement highlights our commitment to operational excellence and positions us to invest in innovative healthcare solutions that will enhance the overall experience for our patients and their families.”
In 2023, S&P Global Ratings revised its outlook to positive from stable and reaffirmed its prior ‘A-’ rating. Also that year, Moody’s Investors Service elevated its revenue bond rating from Baa2 to Baa1, and in 2024, Broward Health earned A+ ratings from Fitch Ratings.
With this latest announcement, the system proudly celebrates its first-ever double-notch upgrade – a significant milestone that underscores its exceptional financial performance and operational resilience.
About Broward Health
Broward Health, founded in 1938 and headquartered in Fort Lauderdale, Florida, ranks among the 10 largest public healthcare systems in the United States. Nationally recognized for its focus on high-quality care for the residents of Broward County and beyond, Broward Health boasts five hospitals, two trauma centers, a dynamic academic partnership with Florida Atlantic University, was the county’s first statutory teaching hospital and has an ever-growing graduate medical education program. It includes more than 50 health centers and physician practices covering virtually every healthcare specialty.
Broward Health never stops working toward its mission of Exceptional Care, Extraordinary Compassion and Everyday Excellence. Driven by more than 11,000 talented employees and physicians who deliver care to all patients, regardless of their ability to pay, Broward Health is one of the largest employers in Broward County with an operating budget of $1.8 billion and annually provides almost $470 million of charity and uncompensated care. For more information about Broward Health, visit BrowardHealth.org.
