Richmond, Va.-based VCU Health's strong ratings with Moody's and S&P have been strengthened by the system's investments in outpatient care, CFO James Siegel said in a Dec. 16 report posted on the system's website.
"Over the past three years, outpatient visits have significantly increased, which means more patients have access to the high-quality care we provide," Mr. Siegel said in the report.
In particular, Mr. Siegel highlighted the system's Adult Outpatient Pavilion, which opened in December 2021. The 17-story, 615,000-square-foot facility consolidated 26 outpatient specialties under one roof. VCU Health said at the time of its opening that the facility was expected to serve 200,000 patients annually.
VCU Health has an "Aa3" rating with a stable outlook from Moody's and an "AA-" rating and stable outlook with S&P, according to the report. Mr. Siegel said the ratings agencies' most recent reports include the system's full results from fiscal 2024, which were stronger than the agencies' assessments of its mid-year performance.
"They also highlight that we’ve carried that strong performance into FY2025," he said. "It’s a good sign of consistency and stability."
Mr. Siegel said that another factor bolstering the system's strong ratings is its efforts to tackle labor costs. He said VCU Health has significantly reduced contract labor expenses by focusing on workforce retention.
He also said the system has worked with their group purchasing organization "to get better pricing on supplies, and we’ve been disciplined in how we spend."
Mr. Siegel said the system is continuing to invest in and expand critical services, such as adding patient beds for the neonatal intensive care unit within Children's Hospital of Richmond at VCU. The system is also close to opening additional transplant beds within VCU Medical Center.
"We’re also staying focused on operational efficiency, outpatient growth, and strategic capital investments," he said. "All of these initiatives are designed to ensure we continue to drive excellent quality outcomes and patient experience, while also [remaining] operationally and financially strong in the eyes of the rating agencies."
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