Credit rating firm Moody's Investors Service has upgraded the long-term bond rating of Beebe Medical Center in Lewes, Del., following the hospital's major class action settlement with victims of a former pedophile pediatrician who had admitting privileges at the hospital.
Earl Bradley, MD, was convicted in August 2011 of raping or abusing 86 patients. After receiving complaints that Dr. Bradley delivered inappropriate care to young girls, Beebe cleared the physician of any wrongdoing. The hospital allowed him to keep his privileges to treat patients after he resigned as an employee and until he was arrested in December 2009. Dr. Bradley is currently serving 14 life sentences.
In October, the hospital reached a $122.2 million settlement with victims. Moody's upgraded Beebe's credit rating to Baa3 from Ba3, citing the "elimination of key event risk following the settlement," according to the report.
Moody's analysts said the settlement capped financial risk to "manageable levels," and despite the difficulties associated with legal proceedings, Beebe maintained relative "operational stability" with an operating margin of negative 1.1 percent.
Earl Bradley, MD, was convicted in August 2011 of raping or abusing 86 patients. After receiving complaints that Dr. Bradley delivered inappropriate care to young girls, Beebe cleared the physician of any wrongdoing. The hospital allowed him to keep his privileges to treat patients after he resigned as an employee and until he was arrested in December 2009. Dr. Bradley is currently serving 14 life sentences.
In October, the hospital reached a $122.2 million settlement with victims. Moody's upgraded Beebe's credit rating to Baa3 from Ba3, citing the "elimination of key event risk following the settlement," according to the report.
Moody's analysts said the settlement capped financial risk to "manageable levels," and despite the difficulties associated with legal proceedings, Beebe maintained relative "operational stability" with an operating margin of negative 1.1 percent.
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