Moody's Investors Service downgraded Mount Sinai-NYU Medical Center Health System, New York, to a speculative Ba1 from Baa3 because of continuing operating losses at Mount Sinai Hospital that exceeded budgeted targets. The outlook is negative. Despite implementation of a turnaround strategy, Mount Sinai has been unable to meet all financial expectations and has suffered from a turnover in leadership, Moody's said. The hospital "disproportionately affects the operating performance" of the entire system, the rating agency said. Mount Sinai contributed an operating loss of $47 million to the system's overall operating loss of $46 million in fiscal 2002, according to Moody's. Lower volume and revenue beginning in fall 2002 accounted for the majority of the losses. -- by Cinda Becker
Mount-Sinai NYU rating downgraded to speculative
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