Overlook Medical Center's Parent Is Highest Rated In NJ

SUMMIT, NJ — Atlantic Health System, parent of Summit's Overlook Medical Center, 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.

“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.”

The credit agencies noted the following among the reasons for Atlantic Health System’s 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

(Image via Atlantic Health System)

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