Memorial Healthcare System ended fiscal year 2018 (May 1, 2017 through April 30, 2018) with a strong financial position. We remain one of a few comparable public healthcare systems with Aa3/AA or higher bond ratings by Moody’s and Standard & Poor’s, respectively. In April 2018 and May 2018, Standard & Poor’s and Moody’s respectively affirmed their credit ratings. These achievements are the result of many factors, including strong cash flow from business operations, a strong balance sheet and key strategies to develop specialized services to attract patients from the primary market and beyond.
This solid financial base allows Memorial to help shoulder the financial burden of providing a high level of uncompensated care. It also enables the development and support of leading-edge facilities and services, recruitment of outstanding employees and the ability to uphold its mission as the “safety net” healthcare provider in south Broward County.
Memorial’s financial strength also enabled its Board of Commissioners to continue its multiyear history of providing tax relief to the taxpayers in south Broward County. In September 2017, the Board of Commissioners voted to adopt a millage rate of 0.1496 for fiscal year 2018 — the lowest in Memorial’s history.
The millage rate for fiscal year 2018 resulted in a gross levy of $8.2 million and, after accounting for discounts on taxes paid early and uncollectible taxes, generated approximately $7.8 million in taxes paid by district residents. Memorial received no net tax revenue, however, as all $7.8 million was used to pay the required matching funds for the Medicaid program, support community redevelopment agencies in several municipalities, and pay for property appraiser fees and revenue collection fees.
In fiscal year 2018, uncompensated care provided by Memorial reached approximately $861 million, all of which was covered by operations, as there was no net tax revenue during the year.
Fiscal year 2018 marks the eighth year in a row that no tax monies were used to fund the inpatient and outpatient services provided to indigent patients at Memorial hospitals, and for the fourth year in a row, no tax monies were used to fund any operations of the district.
Memorial has maintained a strong financial position that is exceptional in any healthcare sector — public, nonprofit or for-profit. This success allows Memorial Healthcare System to contribute more to the community, thereby creating a healthier community.
