Madison-based University of Wisconsin Hospitals & Clinics is emerging from margin contraction in 2022 and will likely see a moderately improving financial situation into the rest of the fiscal year 2023 and into 2024 and beyond, Moody's said June 28.
While ongoing labor shortages, challenges in its insurance division and its position in a highly competitive market will continue to cast a shadow, the five-hospital system will still enjoy "very solid" days' cash on hand with its "Aa3" rating, Moody's said. The outlook is stable.
Capital spending, funded by bond proceeds, is also likely to remain elevated as the system develops its Eastpark campus, planned for opening in late 2024 and located opposite the UW Health East Madison Hospital.
The system, which employs over 1,700 physicians, has annual revenues of about $4 billion.