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32 HEALTHCARE NEWS 11 Health Systems with Strong Finances By Ayla Ellison H ere are 11 health systems with strong operational metrics and solid financial positions according to recent reports from Fitch Ratings, Moody's Investors Service and S&P Global Ratings. Note: is is not an exhaustive list. Health system names were compiled from recent credit rating re- ports and are listed in alphabetical order. 1. Allina Health has an "AA-" rating and stable outlook with Fitch and S&P and an "Aa3" rating and stable outlook with Moody's. e Minneapo- lis-based system has a leading market position in a competitive service area and favorable balance sheet metrics, according to Moody's. 2. Coral Gables-based Baptist Health South Florida has an "AA-" rating and stable outlook with S&P. e system maintained key balance sheet metrics and generated better-than-pro- jected financial results in fiscal year 2016, ac- cording to S&P. 3. Christiana Care Health Services has an "Aa2" rating and stable outlook with Moody's. e Wilmington, Del.-based system has solid liquidity and a history of above average finan- cial performance, according to Moody's. 4. Froedtert Health has an "AA-" rating and positive outlook with S&P. e system has healthy financial metrics, and its market share in a competitive service area is improving, ac- cording to S&P. e debt rating agency expects Froedtert's financial profile to remain consis- tent over the next one to two years. 5. St. Joseph, Mich.-based Lakeland Hospi- tals has an "AA-" rating and stable outlook with Fitch. e health system has a strong fi- nancial profile and leading market position, according to Fitch. 6. Mercy Health has an "Aa3" rating and stable outlook with Moody's. e St. Louis-based sys- tem's balance sheet measures and financial per- formance have improved in the last three years, according to Moody's. e debt rating agency expects Mercy Health's operating margins to continue to improve. 7. Dallas-based Methodist Health has an "Aa3" rating and stable outlook with Moody's. e system has a low debt burden and strong balance sheet measures, according to Moody's. 8. Seattle Children's Healthcare System has an "Aa2" rating and stable outlook with Moody's. e system has strong balance sheet measures and operating performance, accord- ing to Moody's. e debt rating agency expects Seattle Children's Healthcare System's overall profitability to remain strong and its debt cov- erage measures to improve. 9. Madison-based University of Wisconsin Hospital and Clinics has an "Aa3" rating and stable outlook with Moody's. e system has strong balance sheet resources and established clinical and academic market positions, ac- cording to Moody's. 10. Richmond-based Virginia Commonwealth University Health System has an "Aa3" rating and stable outlook with Moody's. e health system has solid operating performance and a strong credit profile, according to Moody's. e debt rating agency expects the health system to sustain cash flow margins at close to current lev- els and maintain its liquidity. 11. WellSpan Health has an "Aa3" rating and stable outlook with Moody's. e York, Pa.-based system has a strong and broadening market posi- tion and a track record of healthy financial perfor- mance, according to Moody's. n Hospital Industry's Highest-Paid CEO Made More Than $51M in 2016 By Ayla Ellison K ing of Prussia, Pa.-based Universal Health Services Chairman and CEO Alan Miller made more than $51.3 million last year, according to the com- pany's annual proxy filing with the Securities and Exchange Commission. That amount includes his base salary, realized gains on stocks and options, incen- tive compensation and payment for perks and personal benefits. In determin- ing Mr. Miller's pay, UHS' compensation committee takes into account his role as founder of UHS in 1978 and his expertise, responsibilities and reputation in the hospital management industry, according to the proxy filing. Mr. Miller's annual compensation makes him the hospital industry's highest-paid CEO, according to recent Axios report. UHS reported strong financial performance in 2016. The company recorded net income of $702.4 million on revenues of $9.8 billion last year. That was an im- provement from 2015 when the for-profit hospital operator posted net income of $680.5 million on revenues of $9.04 billion. n heart, fix the problem and return me to health in a matter of days. I have fully recovered to enjoy life with my family and to lead this incredible organization." Mr. Tyson's post is his personal tribute to physicians, whose "dedication, expertise and professionalism" restored his health and works to support that of the 11.7 million mem- bers of Kaiser Permanente who seek care from Permanente Medical Group's 22,600 physicians. "Physicians work 24 hours a day, seven days a week and 365 days a year. They work early, late, and on weekends and holi- days. In addition to advocating prevention through diet and exercise, they manage complex and critical care with their knowledge, capabilities and world-class leadership for our patients and for the medical profession," Mr. Tyson wrote. "I love my job, but I am not a physician. That's why I want to say thank you to our physicians." Mr. Tyson wrote that while he's always admired and re- spected Kaiser's physicians, he walked out of the hospital with even more gratitude for what they do. "Thank you for giving me more years, new memories and beautiful mo- ments to come. I salute you," he wrote. n