Moody's Affirms Aa3 Rating for Texas Health Resources, Notes Challenges of Physician Group Integration 08/15/2011
ARLINGTON, Texas — Texas Health Resources announced today that Moody’s Investor Services has affirmed its Aa3 rating of Texas Health’s outstanding bonds while changing the outlook to negative. In its report released Aug. 5, Moody’s noted that while the health system faces challenges integrating the large physician group acquired in December 2010, the acquisition is viewed as a long-term positive for the strength and growth of the system.
“We are very pleased to maintain this level of bond ratings in the current economic environment,” said Douglas D. Hawthorne, FACHE, CEO of Texas Health Resources. “We are making very good progress integrating the physicians and other people who joined Texas Health Physicians Group from Medical Edge Healthcare Group. As the Moody’s report points out, the acquisition quickly advanced our 10-year strategy of aligning more closely with physicians.
“We’ve also taken steps to address other challenges that are primarily due to the current economic environment,” Hawthorne added. “Our culture of quality and service is stronger than ever, and our dedicated employees and the physicians who practice in our hospitals are supported by a strong management team that has effectively dealt with such challenges before.”
The Moody’s report cited several positive points about Texas Health, including:
Leading market share in the highly competitive Dallas-Fort Worth Metroplex
Second year in a row of improved financial performance through fiscal year 2010
Continued improvement in liquidity
Favorable debt structure
About Texas Health Resources Texas Health Resources is one of the largest faith-based, nonprofit health systems in the United States. The health system includes 24 acute care and short-stay hospitals that are owned, operated, joint-ventured or affiliated with Texas Health Resources. It includes the Texas Health Presbyterian, Texas Health Arlington Memorial and Texas Health Harris Methodist hospitals, a large physician group, outpatient facilities, and home health, preventive and fitness services, and an organization for medical research and education. For more information about Texas Health Resources, call 1-877-THR-WELL, or visit www.TexasHealth.org.