Analysts are looking askance at the C-suite turnover at the Ft. Lauderdale-based health system, which has had four CEOs in the past three years.
The ongoing leadership turnover at Broward Health has not gone unnoticed by financial markets.
Standard & Poor's Global Ratings said this week that the sudden departure of Broward Health CEO Beverly Capasso "does not immediately affect" the bond rating agency's BBB+ long-term rating, but "reinforces our negative outlook."
"The negative outlook reflects Broward Health's continued void in permanent senior leadership with many positions filled on an interim basis during a period of significant challenges and heightened external scrutiny," S&P said in a ratings brief.
Capasso, a former board member at Fort Lauderdale-based Broward Health, was named CEO in January and resigned abruptly last Wednesday. A system spokesperson told HealthLeaders that Capasso had cited personal reasons.
"Having signed a three-year contract, we believed that Ms. Capasso would be in the role for a longer period to bring stability to the organization," S&P said.
Capasso and four other Broward Health leaders—General Counsel Lynn Barrett, board Chairman Rocky Rodriguez, and board members Christopher Ure and Linda Robison—face misdemeanor charges for allegedly mishandling the dismissal of former interim CEO Pauline Grant in 2016 in violation of Florida's Sunshine Law, which requires public entities to conduct their business publicly.
Capasso was on the board when Grant was fired over kickback allegations in late 2016, as the Sun Sentinel reported. All have pleaded not guilty.
S&P said that permanent leadership appointments and management stability are key factors when assessing health systems' credit ratings.
"In our opinion, the turnover in the CEO position—four CEOs in the past three years—highlights further instability in senior leadership and a heightened credit risk from ineffective management and governance practices," S&P said.
"We will continue to monitor developments as they evolve and expect to have an in-depth discussion with management during our next annual surveillance update."
“the turnover in the CEO position—four CEOs in the past three years—highlights further instability in senior leadership and a heightened credit risk from ineffective management and governance practices.”
Standard & Poor's Global Ratings
John Commins is the news editor for HealthLeaders.
Photo credit: (at top) Broward Health Medical Center in Fort Lauderdale, Florida, as pictured in 2013. Creative Commons image by Rytyho usa https://hlm.tc/2P3RMFo
KEY TAKEAWAYS
S&P says leadership void reinforces its negative outlook for Broward Health.
CEO Beverly Capasso resigned suddenly last week, citing personal reasons.
Capasso and four other leaders at Broward Health face misdemeanor charges for violations of Florida' Sunshine Law.