JOHNSON CITY, Tennessee, May 27, 2022 (GLOBE NEVSVIRE) - A few days after Fitch Ratings released its “A” rating for the Ballad Health loan, Standard and Poor’s published its own report, concluding that confirms Ballad Health’s credit rating of “A-” with a stable outlook.
The S&P Global Ratings report also cites the performance of Ballad Health before the pandemic in its implementation of the merger of the Mountain State Health Alliance and the Wellmont Health System, as well as its assessment of the performance of Ballad Health during and out of the pandemic.
Ballad Health Management and Management Performance Related to Mergers and Pandemics
“In our opinion, Ballad has an experienced management team that has responded well to the challenges of the pandemic and has taken a proactive and purposeful approach to mergers that includes developing a strong strategic vision, setting explicit financial and non-financial goals, and coordinating executive power. and functional leadership, integrating cultures and using best integration practices, ”the S&P Global Ratings report said. “Furthermore, we believe that management is making some difficult decisions regarding the need to consolidate services throughout the system and to improve quality and performance, while maintaining access across the region.”
“Prior to the pandemic, Ballad had positive operational performance in fiscal 2019, as management has progressed on many fronts and has been active in implementing cost and efficiency reductions to sustain positive business,” the report added.
The report states that Ballad Health has achieved health care costs reduction of more than $ 194 million, emphasizing that Ballad Health has reduced health care costs for the Appalachian Highlands.
The S&P report holistically reviewed the financial and non-financial performance of Ballad Health before and during the pandemic and concluded that Ballad Health has, in fact, reduced health care costs for our region by implementing the strategies we established in 2017 and adhering to state conditions. set in our merger agreements, ”said Ballad Health President and CEO Alan Levin. “The board of directors has been efficient in its management and supervision of this complex process, and the results are objectively clear. Ballad Health has kept its promises of lower costs and better quality. We remain committed to this in the future. “
In its report, S&P Global lists some of the problems facing the hospital industry in connection with the pandemic, which affect the health of the Ballads.
In our view, partially offsetting rating factors include our assessment of Ballad’s short-term uncertainty about the pace of business recovery, and likely increased labor and inventory costs, and the challenging pay mix with a modestly declining commercial mix, including reliance on government taxpayers and high reliance on special funding. “The pandemic and higher costs have led to recent financial pressures that could persist in the near future,” the report said.
“With all the pressure on our team members over the past two years, the Ballad Health Board and management team have decided to invest in our first team,” Levin said. “We have increased salaries by more than 120 million dollars and invested more than 100 million dollars in the use of contract work to help burden the workload caused by the COVID-19 raids, combined with a significant shortage of staff in the country.” Our board has also approved more than $ 30 million to invest in the development of 13 child care centers so that members of our team can benefit from and expand our employee assistance programs. And our board approved several bonuses for first team members worth more than $ 20 million in gratitude for the hard work and dedication shown by our Ballad Health family. We clearly recognize that our best asset is our Ballad Health family of 13,000 members and we are committed to continuing to rely on their needs as they serve our region.
In addition to direct investment in team members, the Ballads Health Committee approved a $ 10 million investment in the creation of the Appalachian Highlands Nursing Advancement Center at East Tennessee State University. The investment was highlighted with the support of the Tennessee legislature and governor, who likened it to a $ 1 million annual commitment to transform the center into a Tennessee center for nurses.
The S&P Global report considers increased salaries paid to team members and support to nurses in its analysis of current salary cost pressures.
“On behalf of the board, I can say unequivocally that our focus is on ensuring that our team members provide the highest quality care for the people who entrust their care to us, and we believe in the investments we make in our team member. well-being is essential, “said David Lester, chief executive. “If we properly support our team, we believe that it will result in the realization of our mission.
The Standard and Poor’s report is attached and available here.
More information about Ballad Health is available at www.balladhealth.org.
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About the health of the Ballad
Ballad Health is an integrated community health promotion organization serving 29 Appalachian Highlands counties in northeastern Tennessee, southwestern Virginia, northwestern North Carolina, and southeastern Kentucky. Our system of 21 hospitals, post-acute care and behavioral health services, as well as a large multi-specialty doctor’s office, works closely with an active independent medical community and community stakeholders to improve the health and well-being of close to a million people. Leading in the adoption of value-based payments, addressing social health needs, funding research into clinical and health systems and committing to long-term investment in strong children and families in our region, Ballad Health seeks to become a national model for rural health and healthcare . Find out more at www.BalladHealth.org.
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S&P Global Report - Ballad Health
