Moody’s Investor Services has affirmed the Erlanger Health System A3 bond rating, revising the Chattanooga-based healthcare system’s outlook from negative to stable.
In the extensive public report, issued Tuesday, Moody’s analysts discussed numerous positive factors that influenced its improved forecast. Among the many strengths cited by Moody’s was Erlanger’s “wide regional draw with unique high-end services, and a leading market share (33%) in the total 15 county service area.”
Analysts also pointed to Erlanger’s “marked improvement in operating cash flow in FY 2009, with expectations for further improvement in FY 2010.”
Moody’s also reported other key credit strengths, including Erlanger’s prominence as a regional referral center for the tri-state area, and its affiliation with the University of Tennessee College of Medicine, making it the principal clinical training site for residents. Also cited were Erlanger’s unique specialty services, such as the region’s only Level 1 Trauma Center, Children’s Hospital (one of only four Comprehensive Regional Pediatric Centers in the state), air ambulance service, and Level III neonatal intensive care service.
“I am extremely proud of this achievement and our organization,” said Erlanger Health System President and CEO, Jim Brexler. “To achieve this rating, particularly in tough economic times, is a tribute to our great leadership team, employees and medical staff. Obviously Erlanger’s operational achievements appealed to the reviewers."
“It’s a real feat that Erlanger has been able to achieve these ratings in the market when other non-profit healthcare systems are being downgraded,” said Erlanger Chief Financial Officer, Britt Tabor. “We work very hard to obtain the highest rating, and this positions us well for future growth and success as the region’s leading healthcare provider.”