One of the Largest Faith-Based
Nonprofit Health Systems in the U.S.
Texas Health made several strategic investments to expand services to the growing North Texas population during the year. These included:
To enhance and increase our primary care network of providers who provide care for all stages of life, we brought 132 Texas Health Physician Group practices under the Texas Health brand. We also launched TexasHealthFamilyCare.com to make it easier for consumers to research primary care doctors, schedule appointments and access health information.
Southwestern Health Resources, a clinically integrated network formed by Texas Health and UT Southwestern Medical Center, also achieved significant milestones, including:
In 2019, we plan to open a new $270 million medical office complex and hospital in Frisco, working collaboratively with UT Southwestern Medical Center. The campus will include walking trails and comforting design features and other environmentally conscious elements, such as a rainwater collection system.
As one of the largest employers in North Texas, we serve as a critical economic engine that provides wages and jobs, revenue and local business to suppliers in our 16-county service area.
Texas Health operates in one of the fastest-growing regions of the nation, which requires that we delicately balance investing in growth and innovation with responsibly stewarding the financial resources in which we have been entrusted. Like most systems operating in today’s environment, we are experiencing decreased patient volume at our hospitals, receiving less reimbursement for the charity care we provide and are caring for a higher number of Medicare patients who pay lower fees. Despite these challenges, we have demonstrated consistently strong financial performance since 2009. Key performance indicators are generally more favorable than our peers and rank on par or above the Moody’s Aa2 and S&P Global’s AA credit-rating medians.
To mitigate financial risk, we have been forging strategic affiliations with complementary organizations to help us continue providing high-quality care in the communities we serve. For example, through Texas Health Aetna, we are delivering more affordable and better-coordinated care to local employers and residents. We are also engaged in Southwestern Health Resources – a clinically integrated care network of more than 4,300 doctors, 28 hospital and rehabilitation center locations, and more than 80 outpatient facilities and 230 community access points – with UT Southwestern Medical Center.
Texas Health remained financially strong with operating revenues up 2.4 percent since 2017 to $4.8 billion. Moody’s Investors Service affirmed our Aa2 rating based on our strong cash positions, good debt coverage and stable financial performance, while S&P Global Ratings affirmed our AA rating.
Operating expenses grew to $4.5 billion, a 2.7 percent year-over-year increase. Also during the year, we completed our third full year of a five-year, $500 million cost-cutting campaign to maximize efficiencies and further reduce expenses.
To meet new market demands and consumers’ needs, we made the decision in early 2019 to adjust services offered at some of our facilities. While painful in the short term, we are making these staffing adjustments to better position Texas Health for future success. We are finding more efficient ways to deliver quality services, determine new sources of revenue and ultimately reduce our costs to be successful and competitive in the coming years.
To effectively improve the health of the people in the communities we serve, we recognize we must cultivate and maintain a culture of excellence to fulfill our Mission. We achieve this through: