One is its fantastic growth. As a result, it doesn't have the same problem of overcapacity with too many beds that is seen in some other parts of the country. Craig Kornett, a senior director with Fitch, agreed. He also cited the relative tameness of managed care in the region. From that perspective, the reimbursement environment for hospitals in the Southeast is relatively favorable.
Individual hospitals have other advantages.
Hill said WellStar still has a large number of employed physicians. That may have harmed its credit rating. WellStar has a lot of physician losses but it is working on cost containment and trying to improve its managed-care contracts. Another Atlanta-area hospital also was downgraded at the end of the quarter, this time by Moody's. A Promina member, Southern Regional Medical Center in Clayton County, was downgraded to A3 from A2 with a negative outlook, said analyst Lisa Goldstein.