Business & Finance

Press Releases

S&P, Moody's Give Atlantic Health System Highest Health System Rating in NJ

MORRISTOWN, NJ - Atlantic Health System, a leading health care delivery system in New Jersey, is once again the highest-rated New Jersey based system rated by credit agencies Moody’s and S&P.

Moody’s raised its rating for the health care organization from A1 to Aa3, the highest rating among all health care systems in New Jersey, with an outlook of “stable.” The rating upgrade reflects Atlantic Health System’s continued stability of operating performance and financial growth of the balance sheet, as well as its favorable market position and the “wide array” of services it provides.

S&P affirmed its “AA-“ rating for Atlantic Health System due to its strong presence in the region and increased system diversity among its six hospitals and a network of community-based physicians throughout northern and central New Jersey. Along with only one other organization, this is the highest rating given to health systems in NJ by S&P. Atlantic Health System’s outlook with S&P remained stable.

Sign Up for E-News

The ratings actions by both agencies put the system in a favorable position to leverage its credit strength and allows the system to issue or refinance its debt at more favorable interest rates. Atlantic Health System may pay less on interest on its bonds and allow the organization to invest more of its money in patient care initiatives, including technology, skilled staff and infrastructure.

“These ratings further demonstrate the value of developing our connections to the communities we serve through wise growth, investment in innovation and continuously improving care, said Kevin Lenahan, senior vice president and Chief Financial and Administrative Officer for Atlantic Health System. “The rating upgrade puts us on even better footing to fulfill the health care needs of our communities.”

Moody’s also highlighted Atlantic Health System’s ability to reach agreements in many of its host communities on fair-share community contributions in response to municipalities’ review of the tax-exempt status of hospitals and other facilities.

“A key credit strength of the system speaks to management's ability to navigate recent state and local budget challenges quickly and proactively,” Moody’s said in its rating.

S&P highlighted “AHS’ focus is on continued development of population health infrastructure and strategies to drive growth to the organization.” This includes increased integration between owned and independent hospitals, Atlantic Medical Group, community based physicians, and payers.

The credit agencies noted the following among the reasons for Atlantic Health System’s enviable ratings and outlook:

  • Atlantic Health System is a large multi-site organization with more than $2.5 billion in revenue and 100,000 total admissions (including observation stays and admissions)
  • The strong presence of the system in the region, including the growth of the system. The agencies noted the acquisition of Hackettstown Medical Center in April 2016, as well as Atlantic Health System’s participation in the Mid Jersey Health Alliance with Hunterdon Healthcare System, which coordinates care and offers expanded clinical services in Hunterdon, Somerset, Mercer, and Warren counties
  • The rapid growth and increased integration of Atlantic Medical Group, which now includes more than 900 community-based physicians and other providers
  • Continued growth in operating margins, cash measures and debt leverage measures

S&P noted Atlantic Health System’s significant additions of several key leadership roles covering patient experience, integrated care delivery, and innovations and technology following the addition of President and CEO Brian Gragnolati in 2015. The agency also highlighted Gragnolati recently being named chair-elect designate of the American Hospital Association. He will assume the board chairmanship in 2019.

Among other successes reported to the credit agencies has been the performance of the two accountable care organizations (ACOs) affiliated with Atlantic Health System – Atlantic ACO and Optimus Healthcare Partners. Both ACOs produced shared savings for Medicare.

TAP Into Another Town's News:

You May Also Like

Sign Up for E-News

Montville

Upcoming Events

Carousel_image_de9a05566999ea9379e5_img_0325

Mon, September 25, 4:00 PM

Montville Reformed Church, Montville

Mentor Training for Pathways

Giving Back

Carousel_image_6b2c5316942f05ddd06a_img_5625

Mon, September 25, 7:00 PM

Montville Township Public Library, Montville

Teen Chess Club @Montville Twp Public Library

Arts & Entertainment

Carousel_image_e8857904e656b4ad0796_img_0358

Mon, September 25, 7:00 PM

Montville Township High School, Montville

Teenage Depression Presentation - Remembering T.J.

Education

Carousel_image_94cda0a3b735cb55ed7a_img_5625

Wed, September 27, 4:00 PM

Montville Township Public Library, Montville

Teen Yo-Yo Class @Montville Twp Public Library

Arts & Entertainment

Help Educate At Risk Teens (HEART) Fundraiser for Morris County Youth Wellness Summit

September 18, 2017

Hi, my name is Veronica Tullo and I am the current International United Miss Junior Teen 2017.  Last year I chose as my platform the cause of teen suicide and depression awareness because this issue has affected so many of my friends and people I love.  Since then I have been working closely with The Society for the Prevention of Teen ...

Addiction Recovery Services Van Traveling to Pine Brook Sept. 14, Offering HOPE

September 12, 2017

MONTVILLE, NJ – In its previous life, the HOPE ONE vehicle had been utilized in police tactical operations. Now, all law enforcement logos and lights are gone.

The exterior is decorated with a purple ribbon to signify recovery. “HOPE ONE” is inscribed within the purple ribbon, along with the Morris County “Stigma Free” logo. A 24-hour contact number for Morris ...

9/11 Commemorated in Montville Township

September 12, 2017

MONTVILLE, NJ – Montville Township residents gathered for a somber 16th anniversary remembrance of the six residents lost in the 9/11 terrorist attacks and the two residents lost in the Pan Am flight 103 terrorist attack in Lockerbie, Scotland.

But former VFW Post 5481 Commander Frank Warholic also wanted to make it clear that the heroes should also be remembered. He called the group ...

Morris Essex Tuesday Senior Softball (METSS) League Holds Ninth Annual BBQ

September 15, 2017

RANDOLPH, NJ- The Morris Essex Tuesday Senior Softball (METSS) League recently held its ninth annual barbecue in Randolph.  Over 200 players participated in the morning round robin tournament and then joined their fellow athletes at Brundage Park to enjoy the end-of-season picnic.  Food was provided by the Randolph Diner and beverages by High-Grade Beverage ...

Holmdel Mourns Tragic Death of High School Junior Who Collapsed During Lacrosse Game

September 19, 2017

HOLMDEL, NJ — A GoFundMe page has been launched to support the family of Jack Dowd, the 16-year-old who died after collapsing at a lacrosse game at Rutgers University.

The Holmdel High School junior and varsity lacrosse player collapsed on Sept. 17 on the field during a scrimmage at the New Brunswick-based university. According to a Rutgers spokesperson, emergency services ...

Teenage Depression Presentation: Remembering T.J.

September 20, 2017

MONTVILLE, NJ – The Montville Township Public Schools invite parents and students to attend “Remembering T.J.: A Story of Teen Depression, Lessons and Hope,” presented at the Montville Township High School auditorium on Sept. 25 at 7:00 p.m.

T.J. Sefcik was only 16 years old when he took his own life. His parents, Wendy and Steven, present this program in the hopes of ...

Columns

JCP&L Provide Support Across the Companies Service Area

JCP&L linemen and support personnel are among a large group of linemen, damage accessors, electrical contractors, forestry crews and support personnel from FirstEnergy Corp. utilities  that have mobilized to help utilities in Florida with restoration efforts as a result of Hurricane Irma.

Open Houses on Sunday for Century 21 The Crossing

MONTVILLE, NJ - Following are the open houses for Century 21 The Crossing on Sunday, Sept. 10:

2 Macleay Road, Montville from 1 - 4 p.m.
12 Pond View, Montville from 1 - 3 p.m. 

Sam Shepard's 'Simpatico' takes off

Sam Shepard’s “Simpatico” has a forceful workout at McCarter Theatre.

By Liz Keill

PRINCETON, NJ – If you’re at all familiar with the works of Sam Shepard, you know that he writes about gritty, unforgiving characters in what appear to be hopeless situations.

In “Simpatico,” we learn that Vinnie and Carter are former partners in a race horse ...

Pet Corner