Beaumont Heath in Southfield today announced its long-term credit rating has been raised to A+ from A with a stable outlook by Standard & Poors (S&P).
Beaumont Health reports its strengths include growing cash on hand to more than 180 days while the system continues to spend routine and strategic capital, a continued leading market share in a highly competitive region, and a strong leadership team.
“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,” says John Kerndl, executive vice president and CFO of Beaumont Health.
S&P noted that regardless of a 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 said Beaumont Health’s debt is manageable.
“Beaumont Health has put in place strategies to operate the system as a highly aligned organization through its hospitals, physicians, and other access points,” according to the report.
“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 (in Royal Oak), while improving its financial flexibility.”
Beaumont Health was formed in 2014 as a nonprofit organization by Beaumont Health System, Botsford Hospital, and Oakwood Healthcare. Beaumont Health has total net revenue of $4.4 billion and consists of eight hospitals with 3,429 beds and 187 outpatient sites.