Many for-profit hospital operators are strengthening market share and expanding service offerings through acquisitions, according to a Moody's Investors Service report.
Los Angeles-based Prospect Medical Holdings and Brentwood, Tenn.-based LifePoint Health are among the conservatively capitalized companies that have expanded their footprints this year.
Prospect Medical Holdings expanded its reach in July with the acquisition of Springfield, Pa.-based Crozer-Keystone Health System. Under the deal, Crozer-Keystone's five hospitals, its physician network and other facilities became part of the Prospect Network.
LifePoint expanded its network in January with the acquisition of St. Francis Hospital in Columbus, Ga. That same month, Duke LifePoint Healthcare, a joint venture of Durham, N.C.-based Duke University Health System and LifePoint Health, acquired two North Carolina hospitals, which were previously owned by Dallas-based Tenet Healthcare. LifePoint extended its reach again in February when it acquired Providence Hospitals, a two-hospital system in Columbia, S.C.
Moody's noted not all for-profit hospital operators are growing. Franklin, Tenn.-based Community Health Systems is currently divesting facilities, and Tenet is reducing the number of hospitals it wholly owns, according to Moody's.
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