Bon Secours Health System, Marriottsville, Md., a Roman Catholic system with 24 hospitals in nine states, told ratings agencies that it had reported inflated revenue and expenses at a Michigan hospital for the fiscal year ended Aug. 31. The misstatements at 65-bed Bon Secours Cottage Health Services, Grosse Pointe Farms, Mich., resulted from entries that were inconsistent with the system's accounting policies, Bon Secours CFO Michael Cottrell said. "We are in the investigatory process right now," Cottrell said. "It is our intention to give a full report when we know the facts." Forensic accountants from PricewaterhouseCoopers have started reviewing the irregularities and are determining if prior periods were affected, he said. Moody's Investors Service analyst Beth Wexler maintained a stable outlook on Bon Secours' $1.1 billion of outstanding debt. "We are going to wait to make a rational decision based on the disclosure they will provide us," Wexler said. -- by Patrick Reilly
Bon Secours says hospital misstated finances
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