Bond analysts: working with employees could improve RHC's finances 

Resurrection could improve its standing in the bond market if the hospital chain resolved its conflict with employees, according to one of the nation's top bond rating services.  On April 19, Moody's Investors Service lowered Resurrection's bond ratings on $707.6 million of debt and reaffirmed its negative outlook for the company. 

Henry Bayer, Executive Director of AFSCME Council 31, urged the company to make peace with its employees in light of the urgent need to improve its financial condition.  "Resurrection management cannot expect to improve its performance unless it treats its employees fairly and allows them to have a voice on the job," Bayer said.  "You cannot run a successful business, never mind a hospital, if you refuse to heed workers' legitimate aspirations."

Moody's retained its ratings outlook for RHC as "negative" and indicated that improved operating performance would be demonstrated by, among other changes, a "resolution" of the labor dispute.  Moody's further emphasized that "increased labor and political pressures" could cause the bond rating to decline further in the future.

"The employees at these hospitals very much want Resurrection to be successful," Bayer continued, "but the company can't succeed without the input of its employees.  Resurrection's employees need to have their voices heard and their services valued if management is to fulfill its mission."