FORT LAUDERDALE, Florida - Fitch Ratings assigned an A+ Issuer Default Rating to the North Broward Hospital District, which operates as Broward Health, and assigned an A+ long-term rating to the $297.3 North Broward Hospital District Revenue Bonds, Series 2017B.
The A+ ratings reflect Broward Health's “strong revenue defensibility” and “solid balance sheet metrics.” The ratings also acknowledge “considerable progress over the last three years toward improving operating performance,” according to a press release issued by Fitch. Fitch credits the strong Broward Health leadership team and North Broward Hospital District Board of Commissioners, the governing body of Broward Health, with renewing its focus on the core business, greater physician alignment and growth opportunities.
“Our focus on enhancing and expanding healthcare services while improving operational efficiencies has earned us not one, but two A+ ratings for financial performance,” said Shane Strum, President & CEO of Broward Health. “I am proud of our team’s dedication to providing exceptional care to patients while optimizing our financial performance.”
According to the filing, in Fitch's opinion, Broward Health’s “financial profile is very strong.” Fitch reported that Broward Health stabilized its operating profile and operating earnings before interest, taxes, depreciation and amortization (EBITDA) margin, which is a measure of core corporate profitability. Fitch added that growing volume, good cost management and growth opportunities, which include Broward Health's expanding footprint, physician recruitment and new partnerships, point to EBITDA margins remaining in line.
The two Fitch A+ ratings are Broward Health’s most recent financial achievements. In September 2023, Moody's Investors Service raised its revenue bond rating to Baa1 from Baa2 for Broward Health, citing Broward Health’s “durability of margins and liquidity,” as well as its efforts to grow and diversify revenue by expanding retail pharmacy and other business lines. Then, in October, S&P Global Ratings raised its revenue bond rating to Baa1 from Baa2 and revised its outlook to positive from stable and affirmed its 'A-' long-term rating on Broward Health’s series 2017B revenue bonds
“These three financial recognitions are an incredible achievement for Broward Health, all while lowering the millage rate,” Strum said. “We remain committed to finding innovative ways to streamline our operations and optimize our resources so that we can continue to deliver exceptional healthcare for all those we serve while being fiscally responsible for our community.”
Fitch Ratings is one of the top three credit rating agencies internationally. They publish credit ratings that are forward-looking opinions on the relative ability of an entity or obligation to meet financial commitments.
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 $1.6 billion, and annually provides almost $225 million of charity and uncompensated care.
For more information about Broward Health, visit BrowardHealth.org.