S&P: Ardent Health unaffected

Standard & Poor's said Friday that the ratings on Ardent Health Services Inc. (B+/negative/--) would not be affected after the company announced possible accounting violations at its largest subsidiary, Lovelace Sandia Health System Inc.

Ardent has initiated a review to determine if there were any violations in the way Lovelace reconciled accounts between its internal provider network and its health plan. At this time, it is unclear whether any violations occurred, or, if they did, what their magnitude would be or what impact they would have on the company's financial results.

The outlook on the company is negative. This means the ratings could be lowered if management's initiatives to better integrate the company's assets and improve profitability since Ardent's last acquisition do not result in expected improvements in cash flow and credit protection measures.

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