Moody’s cited volume declines, a risky downsizing strategy and pension obligations as key reasons for the downgrade. West Penn Allegheny admissions dropped 7.5 percent in the first nine months of its fiscal year, and Moody’s does not expect the health system to “come close” to meeting its FY budget, according to the report.
The downgrade comes just days after West Penn Allegheny released its third-quarter earnings.
Read the Pittsburgh Post-Gazette‘s report on the West Penn Allegheny bond downgrade.
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.