Despite a negative outlook for Pittsburgh-based West Penn Allegheny, Moody's Investors Service had maintained the health system's Bb3 rating, a true blessing in an era when credit has become even more critical than usual. However, Moody's lowered the health system's credit after news of a $73 million accounting error 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 any more "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