Moody's Investors Service has downgraded to Ba2 from Ba1 the long-term bond rating assigned to Good Samaritan Hospital, Pa.'s $64.5 million of outstanding bonds issued by the Lebanon County Health Facilities Authority.
The outlook is revised to negative from stable.
The rating downgrade follows Good Samaritan's unexpectedly poor financial performance during fiscal year 2012, a reversal from prior year's trajectory, and first quarter FY 2013, with admissions and market share declining in a demographically challenged area.
The revised outlook to negative from stable reflects GSH's difficulty operating as a standalone community hospital in an entrepreneurial physician environment with a growing pension liability and reliance on short-term government provider tax monies.
