Here are five hospitals and health systems with strong operational metrics and solid financial positions based on recent reports from Moody's Investors Service, Fitch Ratings and Standard & Poor's Rating Service.
1. Renton, Wash.-based Providence Health & Services has an "AA" rating with Fitch and an "Aa3" rating with Moody's. The system has a strong market position and improved operating performance in 2014 as well as through the six-month interim period that ended June 30. In 2014, the system posted a 1.8 percent operating margin and an 8.5 percent operating EBITDA margin, which is significantly improved from fiscal year 2013.
2. Allina Health System, based in Minneapolis, has an "AA-" rating with Fitch and an "AA-" rating with S&P. The system's main credit strength is its comprehensive model and geographic reach in the competitive Twin Cities metropolitan area. The system also has solid pro forma debt service coverage.
3.Chicago-based Northwestern Memorial HealthCare has an "AA+" long-term rating with S&P. The system has strong operations for the first nine months of FY 2015. It is outperforming its budget for the current fiscal year.
4. Downers Grove, Ill.-based Advocate Health Care has an "AA" rating with Fitch. The system has ample liquidity and a solid market position. Advocate maintains a leading position in its six-county Chicago metropolitan service area that is nearly double its nearest competitors.
5. Bayhealth Medical Center, a two-hospital system based in Dover, Del., has an "AA-" rating with Fitch. The system has an excellent financial profile and strong market leadership. Bayhealth maintains a dominant position in its primary service area, with a stable market share around 80 percent.
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