Children’s Mercy Kansas City will head into its new fiscal year July 1 with a full head of steam after S&P Global Ratings raised the hospital system’s long-term credit rating, citing its financial strength, performance and operating results.
KANSAS CITY, Mo., June 17, 2022 /PRNewswire/ -- Children’s Mercy Kansas City will head into its new fiscal year July 1 with a full head of steam after S&P Global Ratings raised the hospital system’s long-term credit rating, citing its financial strength, performance and operating results.
S&P Global Ratings raised the hospital system’s credit rating from A+ to AA-, the first rating upgrade for Children’s Mercy in 24 years.
Specifically, Children’s Mercy has delivered on:
- Accomplishing its foundational, transitional, and transformational goals over the last four years by executing on organizational and operation priorities.
- Accelerating its strong financial performance despite the COVID-19 pandemic and the volatility in pediatric patient volumes.
- Staying true to its mission and strategy, providing strong and clear organizational structure and strategic direction.
- Modernizing its platforms and capturing the improvements by implementing large projects and upgrades on budget and delivering operational improvements.
The rating system uses an alphabetical scale from AAA (indicating an extremely strong capacity to meet financial commitments) to D (signifying a financial commitment in default).
“The upgrade reflects Children’s Mercy’s strong financial trajectory that has accelerated in recent years,” said Patrick Zagar, S&P Global Ratings credit analyst. “We believe the currently strong results are not one-time in nature, but rather the result of the holistic organizational changes and investments that leadership has made in recent years that have modernized Children’s Mercy and improved management’s operating effectiveness.”
Children’s Mercy President and CEO Paul Kempinski, MS, FACHE, said Children’s Mercy’s “compelling story” helped pave the way for the credit upgrade.
“Having strong financials is important and certainly was a factor in our upgrade,” Kempinski said. “But it is also about our organizational story and the changes we are making to provide the highest quality care to our patients and their families. It is about building trust and credibility and delivering on our commitments. We feel very positive about the journey we’re on now and into the future.”
About Children’s Mercy Kansas City
Founded in 1897, Children’s Mercy Kansas City is a leading independent children’s health organization dedicated to holistic care, translational research, educating caregivers and breakthrough innovation to create a world of well-being for all children. With not-for-profit hospitals in Missouri and Kansas, and numerous specialty clinics in both states, Children’s Mercy provides the highest level of care for children from birth through the age of 21. U.S. News & World Report has repeatedly ranked Children’s Mercy as one of “America’s Best Children’s Hospitals.” For the fifth consecutive time in a row, Children’s Mercy has achieved Magnet nursing designation, awarded to only about 8% of all hospitals nationally, for excellence in quality care. More than 850 pediatric subspecialists, researchers and faculty across more than 40 subspecialties are actively involved in clinical care, pediatric research and education of the next generation of pediatric subspecialists. Thanks to generous philanthropic and volunteer support, Children’s Mercy provides hope, comfort and the prospect of brighter tomorrows to every child who passes through its doors. Visit Children’s Mercy and the Children’s Mercy Research Institute to learn more, and follow us on Facebook, LinkedIn, Twitter, Instagram and YouTube for the latest news and videos.
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SOURCE Children’s Mercy
