Navigation Links
Union Links Resurrection Rating Downgrades to Poor Management
Date:5/30/2008

Moody's, Standard and Poor's and Fitch Ratings all take action; outlook negative

CHICAGO, May 30 /PRNewswire-USNewswire/ -- On May 27 and May 28, two major bond rating agencies, Fitch Ratings and Standard and Poor's, respectively, downgraded the debt of Resurrection Health Care citing declining patient census, consistently poor operating performance and management/governance shortcomings.

Fitch Ratings downgraded from 'A' to 'A-' the ratings on Resurrection Health Care's $643.5 million of outstanding bonds and reaffirmed its negative outlook for the company. Fitch cited the weak management/governance practices of the company as a factor in the downgrading.

"Resurrection Health Care's continued decline in the bond market is indicative of a managerial failure to develop a positive vision and program for the system's future," said Henry Bayer, executive director of the American Federation of State, County and Municipal Employees (AFSCME) Council 31. AFSCME is working with Resurrection employees who are seeking to form a union.

"One of the most glaring examples of Resurrection's insular management style is its uncompromising refusal to engage in any form of dialogue with its employees who are seeking a greater voice in the decisions affecting their working lives," Bayer said.

Standard and Poor's said its downgrade "reflects continued sizeable operating losses at Westlake and West Suburban hospitals, which began in 2007, and overall system volume declines -- both of which have resulted in significant system losses, including excess losses, that are much greater than budget through the first nine months of interim 2008."

On April 1, 2008 Moody's Investors Service placed Resurrection on its Watchlist for possible downgrade. Moody's stated that RHC "is reporting declining utilization measures across inpatient and outpatient services at each of its acute care facilities."

Fitch Ratings also cited the decline of inpatient admissions and outpatient visits as a factor in its decision.

Bayer said that declining quality of care is harming utilization at Resurrection hospitals. "Over the past five years public health authorities have cited over 780 deficiencies at Resurrection hospitals," he pointed out. "And eight of the system's hospitals were placed on monitoring by the state for failing to meet the minimum standards for participation in the Medicare program. Time and again, Resurrection has refused to heed employees who seek to improve the quality of care."

"If Resurrection wants to improve utilization it must focus on ensuring the best possible care by involving employees in improving quality," Bayer added.

The recent downgrades followed an earlier downgrade by Moody's in April 2007 in which Moody's cited RHC's refusal to resolve disputes with its employees over unionization as an issue "which continues to distract [RHC] management's attention and consume financial resources."

Moody's cited ending the labor dispute as a critical step toward improving the hospital chain's financial and operating performance.

"Improving employee morale by reducing labor tensions would certainly help to enhance Resurrection's prospects for greater fiscal health," Bayer said.

"The employees at these hospitals very much want Resurrection to be successful," Bayer continued, "but the company can't succeed without the input of its employees. Resurrection's employees need to have their voices heard and their services valued if management is to fulfill its mission."

Resurrection Health Care, with a network of eight hospitals, as well as long-term care facilities and outpatient clinics, is the second largest healthcare system and the largest Catholic-affiliated system in the greater Chicago area with 31% market share.


'/>"/>
SOURCE HEART/AFSCME
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Susan G. Komen for the Cure(R)s Circle of Promise Welcomes Gabrielle Union, Lalah Hathaway, Synthia SAINT JAMES as National Ambassadors
2. Westchester Cycle Club Awards Consumers Union Staffer Karin Weisburgh Commuter of the Year
3. Senior Citizens, Unions, Physicians and Nurses Groups Lend Support to Hospitals State House Rally
4. Consumers, Businesses, Unions, and Medical Professionals: Time for Congress to Act on E-Prescribing Legislation
5. Kidney Care Community Applauds National Taxpayers Unions Endorsement of Medicare Reforms to Extend Patient Private Health Insurance Coverage; Calls Proposal Common Sense Coverage Reform
6. Statement by H.E. Jakaya Mrisho Kikwete, President of the United Republic of Tanzania, and Chairman of the African Union, in Response to UN-SG Call to Action on Malaria
7. SEIU Seeks Damages for CNAs Effort to Silence Workers, Suppress Criticism of Anti-Union Tactics
8. NLRB Orders New Union Election at OConnor Woods
9. Court Orders Service Union and Its President Andy Stern: Stop Stalking and Harassing Registered Nurse Leaders and Staff of California Nurses Assn/NNOC
10. RNs Call on Service Employees Union (SEIU) President Stern to Renounce Violence Following Brutal Attack on Labor Event
11. CNA/NNOC: RNs Condemn Violent Service Union Attack at Michigan Event
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:1/15/2017)... ... January 15, 2017 , ... San Francisco Magazine recently queried ... counties for 2017. Almost 1,000 nominations were submitted and a little over 500 ... were announced the magazine’s January 2017 issue . , Under the category ...
(Date:1/14/2017)... ... January 14, 2017 , ... Healthy ... expanding line of activated charcoal products. With more and more people opting to ... products according to how they cater to specific needs. , Moody Zook focused ...
(Date:1/13/2017)... ... 13, 2017 , ... People with type 2 diabetes know ... easy as checking the nutrition label on foods for grams of sugar. But ... sugar-free, proteins can influence — either positively or negatively — insulin secretion and ...
(Date:1/13/2017)... ... 2017 , ... With the increasing public preference for chemical-free ... organic alternatives for customers who have grown more conscious about maintaining their health ... activated charcoal products, Moody Zook Chief Executive Officer Nate Ginsburg explained their company’s ...
(Date:1/13/2017)... (PRWEB) , ... January 13, 2017 , ... "We wanted ... attractive to wear," said one of two inventors from Virginia Beach, Va. , They ... normally mundane braces. , The accessories allow braces to be customized to suit ...
Breaking Medicine News(10 mins):
(Date:1/13/2017)... New York , January 13, 2017 ... rising prevalence of AIDS will collectively contribute to the demand ... expected to reach a value of US$ 551.0 Mn by ... will remain the most lucrative markets for western blotting, ... lead the market globally. ...
(Date:1/13/2017)... -- Alfalfa, cattle, leafy greens and rosy cheeked children share space ... emphasizes the food industry,s shift from response to prevention. ... Swab Rinse Kit (SRK™) is an ... the wake of the new FDA Food Safety Modernization ... is expanding the U.S. production of the SRK line at ...
(Date:1/13/2017)... , January 13, 2017 This ... see how they have fared at yesterday,s closing bell: ... Biopharma Inc. (NASDAQ: GALE ), and ACADIA ... harness cellular and biomolecular processes to develop technologies and ... environmental footprint, feed the hungry, use less and cleaner ...
Breaking Medicine Technology: