In early August, Moody's Investors Services upgraded NEOMED's issuer and general-receipts bond ratings to Baa1 from Baa2 and the student housing (The Village) revenue bonds to Baa2 from Baa3. The change in ratings allows NEOMED to issue debt for lower costs. At the August 29 Campus Update, President John Langell, M.D., noted that the change could save the University an estimated $215,000 each year in interest.
"Where we are planning strategic growth, because of the fiscal discipline and the zero-based budget, we will have the resources that we need to make those investments for future growth for the University," Mary Taylor, vice president for operations and finance, said in an interview with Crain’s Cleveland Business. She also noted in the interview that NEOMED’s zero-based budgeting approach along with Lean Six Sigma principles helped the University increase operating income by $3 million.
Dr. Langell, who was also interviewed by Crain’s, pointed to the strategic plan – Creating Transformational Leaders – as a driving force for the University’s growth and financial strength.
"Everything we do is driven by that plan, and our finances are very disciplined in order to resource the plan, so it's been our North Star," he said in the interview. "Our real mission here, as a state institution, is to serve the public good in our area of focus, which is graduate health sciences-based education. So, everything we do is aimed at how do we create really good, quality programming for students?"
Read With Credit Upgrade, NEOMED Focuses on Growth in Crain’s Cleveland Business
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