Moody's Investors Service has affirmed an "Aa3" bond rating for Madison-based University of Wisconsin Hospital and Clinics Authority.
Moody's based the rating affirmation on multiple factors, such as the academic medical center's prominent reputation and market position and strengthening financial performance with operating cash flow up 17 percent during the first nine months of fiscal year 2014, compared with 2013. Additionally, as of the end of fiscal year 2013, UWHCA saw material balance sheet growth to just over $718 million of unrestricted liquidity.
Furthermore, UWHCA has a favorable payer mix, with Medicare and Medicaid combined accounting for less than 44 percent of patient revenues. The health system also has strong clinical demand and has experienced growth in aggregate demand, with inpatient and observations in particular up 3 percent in FY 2013, according to Moody's.