Despite setbacks, West Penn Allegheny maintains rating

Despite a negative outlook for Pittsburgh-based West Penn Allegheny, Moody's Investors Service maintained the health system had a Bb3 rating. Moody's lowered the health system's credit after news of a $73 million accounting error [1] got out. Because of West Penn's quick identification and response to the situation, Moody's maintained the company's rating, but threatened a downgrade if West Penn Allegheny has anymore "unexpected setbacks."

In order for West Penn Allegheny to turn things around, the hospital faces the challenge of recruiting new doctors, as well as holding on to old ones. Moody's also believes that the group's leadership needs to be overhauled, and that cash reserves must be stabilized.

For more:
- here's the Modern Healthcare article [2]

Related Articles:
Patient revenue at West Penn inflated by $67 million [1]
SEC probes accounting problems at West Penn Allegheny [3]
West Penn Allegheny forced to adjust balance sheet [4]