NEW YORK - Saint Luke's Hospital and Health Network of Bethlehem, Pa., is involved in a developing investigation centered on a nurse formerly employed by the hospital.
Moody's Investors Service said it currently maintains a Baa2 long-term rating with a stable outlook on $171 million of aggregate outstanding bonds issued on behalf of the hospital through Lehigh County General Purpose Authority and the Quakertown General Authority.
Moody's said it has had discussions with Saint Luke's management to determine if there is likely to be adverse impact on the hospital's financial position. Similar to high profile clinical errors, the current situation would be characterized as an "event risk" which is an unplanned event that can have a material impact on a hospital's financial performance, insurance coverage or physician relations, Moodys said. Based on the discussions, Moodys said it does not expect to take any rating action at the current time as it is too early to determine if the situation will result in a material affect on the hospital's financial or business position.
The nurse in question, who was employed by the hospital from June 2000 to June 2002, has claimed responsibility for patient deaths while recently employed at a neighboring New Jersey based hospital. The Pennsylvania State Police and the Lehigh County District Attorney's office investigated the nurse's actions at Saint Luke's. The investigation ended with insufficient evidence to prosecute the nurse. The review by the District Attorney's office included a review by a forensic pathologist of the medical records of patients who died at the Hospital during the last seven months of the nurse's tenure. The nurse had resigned from Saint Luke's during the investigation for allegedly discarding medication.
Moody's said it will monitor the current situation and, based upon ongoing dialogue and disclosure from management, will assess the magnitude of findings with respect to the hospital's credit risk profile when greater details are made available.
