Excela Health's CEO and COO are resigning as the Greensburg, Pa.-based health system faces financial pressures and seeks "fresh perspectives," according to TribLIVE.
The resignations came after the health system ended the second half of 2018 with a net loss of $24.6 million. That's compared to the second half of 2017, when Excela reported net income of $15.7 million, according to TribLive, which cited a disclosure to the U.S. municipal bond market.
In January, Moody's Investors Service downgraded the outlook on Excela's bonds from stable to negative.
"The negative outlook reflects the risk that margin deterioration pressures will continue resulting in the inability to achieve budget and return to margins consistent with 'A3' medians," Moody's said in a press release. "While we anticipate management's strategies to provide for incremental improvement during fiscal 2019, operating weakness shown through first quarter reveals challenges to meeting a 5.4 percent operating cash-flow margin, which is lower than 2018's operating cash flow margin of 5.7 percent."
Excela is taking steps to strengthen its finances. In March, the health system outsourced its accounting and billing operations to Optum 360, a deal aimed at improving revenue performance. The health system's employees who worked in those departments were able to remain local and are now employed by Optum, according to the report.
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