A high number of Medicare patients (around 20 percent of the hospital’s total case mix), competition from Atlanta hospitals and declining patient volume all contributed to Moody’s decision to downgrade Southern Regional’s rating, according to the report.
Officials from the hospital said that Moody’s decision will not affect its current push toward a financial turnaround, which includes a $40 million bond backed by Clayton County, according to the report. The hospital also recently brought in a new CEO. Officials did note that the downgrade may affect the hospital’s ability to obtain loans in the future.
Moody’s decision comes as Southern Regional petitioned the state for permission to perform open heart surgeries, which includes a financial review. The downgrade should not affect the hospital’s application as it has already secured the funds to begin such a program, according to the report.
Read the AJC’s report on Southern Regional Health System.
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