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.
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