OHSU reports half-year financial performance ahead of budget
01/31/14 Portland, Ore.
Standard & Poor’s changes outlook from Stable to Positive
The Oregon Health & Science University (OHSU) Board of Directors yesterday heard strong first half fiscal year 2014 results as well as positive news on the institution’s bond rating.
OHSU operating income through December is $47.6 million, $13 million over target, with strong patient revenues and good expense control. OHSU has also worked over the past year to refinance debt, leading to a 27% reduction in interest expense for the first 6 months relative to the same period last fiscal year. The interest expense reduction from $16.2 million to $11.8 million represents money that can be put into OHSU programs.
In December, OHSU provided its annual update to the rating agencies in New York and San Francisco. Standard & Poor’s affirmed OHSU’s A+ rating and changed their outlook from Stable to Positive, signaling the possibility of an upgrade in the rating in the next few years if performance continues to be strong. Moody’s has affirmed OHSU’s A1 rating and Stable outlook, while Fitch is expected to issue its update next month.
Oregon Health & Science University is the state's only public academic health and research university. As one of Oregon's largest employers with more than 14,000 employees, OHSU's size contributes to its ability to provide many services and community support not found anywhere else in the state. OHSU serves patients from every corner of Oregon and is a conduit for learning for more than 4,400 students and trainees. OHSU is the source of more than 200 community outreach programs that bring health and education services to each county in the state.