Summa Health System Says Its Finances Are Improving Despite Credit Downgrade

Nov 16, 2017

Summa Health System is Summit County's largest employer, but it's had a rough year following the resignation of its controversial former CEO, loss of ER training certification, and a downgrade in its credit rating.
Credit SUMMA HEALTH

Summa Health System is trying to stay positive after Moody’s Investment Service this week announced a slight downgrade in its bond credit rating from Baa1 to Baa2.  

The downgrade will add around $90,000 per year to the costs of Summa’s $350 million expansion of Akron City Hospital.

But Chief Financial Officer Brian Derrick says Summa’s finances have improved in recent months after a rough few quarters.

“We clearly had a difficult first six months of this fiscal year but we are in an upswing in the last part of this year, and we expect that positive momentum to continue into 2018,” says Derrick.

He says the $60 million in losses predicted earlier this year has been roughly cut in half.

He says competition from larger hospital systems, changes in the insurance markets and a declining population are major challenges moving forward.