Business & Finance

Overlook Medical Center Parent Corp. Atlantic Health System Gets Highest NJ Industry-Specific Rating from S&P, Moody's

5af6781ab6f513307f16_8287e865e491fb7accb0_14199677_299642470402819_4427303564756560332_n.jpg
Credits: facebook.com/AtlanticHealth/photos
5af6781ab6f513307f16_8287e865e491fb7accb0_14199677_299642470402819_4427303564756560332_n.jpg

MORRISTOWN, NJ - Two credit rating industry titans -- Standard & Poors (S&P) and Moody's -- have once again rated Overlook Medical Center parent corporation Atlantic Health System (AHS) as New Jersey's highest-rated New Jersey based system.

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 the Garden State 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, including an accord reached with the City of Summit last month, 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:

Sign Up for E-News

Summit

Status Report #5

June 20, 2018

As summer fast approaches, this will be my fifth semi-annual status report on what I have been up to on Council.  In a change from the prior two years, this year I have been serving as Council president. As such, I have had greater involvement across a multitude of different issues.  However, I want to focus on three themes that have so far permeated this Council: economic growth and ...

Upcoming Events

Carousel_image_3e68b1f0c65d22cd79bc_d6a71058d531d31a8cff_achievers

Mon, June 25

Summit YMCA, Summit

June 2018 College Tour

Education

Carousel_image_b7bf86ab9b5cba4793d9_347facfa8ac6817752ac_19055513_10158829487705483_8854478692329281822_o

Mon, June 25, 7:45 AM

17 Kent Place Boulevard, Summit

Monday Morning Yoga

Health & Wellness

Summit Police Blotter

June 19, 2018

5/29 - Mark L. Howard, 21, of Nutley was arrested and charged with burglary, theft by unlawful taking and credit card fraud. Mr. Howard was processed and released with a pending court date.

5/29 - At 1143 hours a report was taken for a theft of stolen license plate from a River Road business. The victim reported the last time the license plate was seen on the property was within the ...

What is HIIT and Why All the Buzz?

June 23, 2018

HIIT stands for High Intensity Interval Training. Many people, especially those with busy schedules, love HITT because they can get maximum benefits in a short period of time! According to Shape Magazine, “Research shows you can achieve more progress in a mere 15 minutes of interval training (done three times a week) than the girl jogging on the treadmill for an hour. And according to ...

Susan G. Komen North Jersey Increases Program Funding by 15% for 2018-19, Awards 13 Grants to 11 Local Community Nonprofits

Susan G. Komen North Jersey Increases Program Funding by 15% for 2018-2019

and Awards 13 Grants to 11 Local Community Non-Profit Organizations

June 21, 2018  – Susan G. Komen North Jersey announced that it will award a total of 13 grants to 11 local community non-profit organizations in its nine-county service area for 2018-2019, with an increase in total program funding at 15% ...

Maximizing Your Portfolio’s Returns -- Beware the Taxman

The old adage in the investment world is that it is not what you make, but what you keep that counts.  Investors often overlook the ultimate deflator of portfolio returns – the taxman. An astute global asset allocation should be the number one priority for investors.  However, there are preferred ways to distribute this asset allocation over the spectrum of taxable and ...

AtlantiCast

AtlantiCast Episode 17

On this week’s AtlantiCast, it’s National Men’s Health Month, so check out important health tips for you or the men in your life, learn about groundbreaking research into breast cancer treatment that could mean an end to chemotherapy for some patients, meet a local sports hero who’s living his baseball dreams thanks to Goryeb Children’s Hospital and much ...

Video: In The Zone with Christa Anderson

A must watch for anyone considering renovations, here is a recent interview that I conducted -- on my HomeTowne TV Show called “Are You Ready for Life?” -- with Christa Anderson, City of Summit Zoning Officer, to discuss the nuances within the variance process.

I asked Christa to shed some insight into the approval process, explain why it’s necessary, and ...

Hello, Neighbors

Hi, Summit families!

My name is Betsy Stoeber and I’ve been the owner and director at the specialized learning center Brain Balance of Summit since 2011. I first encountered Brain Balance the year before we opened as a parent. My own son participated in our innovative program at the center in Norwalk, CT, to address a number of learning challenges.

Traveling there three times per week ...

My So-Called Graduation

The last of my children graduated from high school.  

 

My son and daughter threw their caps high into the air and cheered their liberation from one symbolic institution before contemplating their matriculation into other, much larger institutions significantly further away.  

 

Or at least far enough away that they won’t be needing rides home from ...