A1 Rating, Stable Outlook for HFHS, Moody's Says

Posted by James / on 05/18/2009 / 0 Comments

Moody's Investors Service, the rating agency, reaffirmed Henry Ford Health System's A1 rating and stable outlook Wednesday.

And last month Standard and Poor's also reaffirmed it's A rating for Henry Ford with a stable outlook.

The bond rating was assigned to Henry Ford's $787 million of outstanding bonds issued by the Michigan State Hospital Finance Authority.

The agency said that Henry Ford is a "Well integrated and nationally recognized health system with seven hospitals, one of the region's largest not-for profit HMOs, the well-established Henry Ford Medical Group, and other health services."

The agency also noted the health system's, "sizable 18% growth in operating revenues across the past two years enhanced by the 2007 conversion to full ownership from equity ownership of Henry Ford Macomb Hospital and Henry Ford Cottage Hospital."

Both agencies noted the challenging regional economic factors affecting the metro Detroit area.
Henry Ford announced last week that its 2008 total revenue was $3.69 billion in 2008, an increase of $217 million from the $3.47 billion total revenues in 2007.

In addition, net income dropped to $8.5 million net income for 2008 as compared to $105 million in 2007, largely because of the losses experienced from investments. Nevertheless, admissions to Henry Ford hospitals increased 1.7 percent from while there was a slight dip in admissions for the entire region.

"These ratings confirm that we remain solidly positioned to meet the economic challenges in the next year," said James Connelly, chief financial officer for Henry Ford.

Henry Ford Health System, one of the country's largest health care systems, integrates primary and specialty care with research and education. It includes the 1,000-member Henry Ford Medical Group, seven owned hospitals, the 500,000-member Health Alliance Plan, 27 primary care centers and many other health-related entities located throughout southeastern Michigan.

-- Source: Henry Ford Health System

 

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