From the ARC-PA accreditation manual (http://www.arc-pa.org/documents/AccreditationManualPostgrad%20Standards%202ndedition%20July%202012%20fnl.pdf):
"The ARC-PA accredits only qualified clinical postgraduate PA programs offered by, or located within institutions chartered by and physically located within, the United States and where PA residents are geographically located within the United States for their education. Accredited clinical postgraduate PA programs must be established in a) schools of allopathic or osteopathic medicine, b) colleges and universities affiliated with appropriate clinical teaching facilities, c) medical education facilities of the federal government, or d) hospitals, medical centers or ambulatory clinics.
The sponsoring institution should either be accredited a) as an institution of higher education by a recognized regional or specialized and professional accrediting agency, b) by the Accreditation Association for Ambulatory Health Care (AAAHC), c) by the Commission on Accreditation of Rehabilitative Facilities (CARF) or, d) by the Joint Commission as a hospital/medical center or ambulatory clinic."
I don't think South fulfills b, c, or d (above). If the school is not regionally accredited, I think it will lose ARC-PA accreditation. Someone please correct me if I'm wrong.