The number of mergers and acquisitions by non-profit hospitals and health systems by or with for-profit entities has increased dramatically in recent months, causing some community health advocates to question the future of care for the uninsured and underinsured in these communities, according to a report by USA Today.
Non-profit hospitals in areas with large numbers of uninsured or other low-income patients have seen bad debts rise with the economic downturn. Financial difficulties make borrowing funds to improve facilities more challenging, and many of these hospitals are seeking partnerships with for-profit entities as a result.
In most cases, these deals must be approved by the state's Attorney General. Yet, some worry that the deals threaten the safety-net status of many of these facilities if the hospitals become concerned with making a profit.
Recent deals between non-profits hospitals and for-profit partners include:
The number of these deals is only expected to increase in the coming months as for-profits operators look to invest capital, which non-profits will continue to need, said analysts cited in the report.
Read the USA Today report on hospital mergers.
Read other Becker's coverage on hospital merger activity.
Report Finds Spending on Healthcare Mergers and Acquisitions Rises in Third Quarter; Hospital Transactions Surge
Renewed Hospital M&A Activity May Drive Surge in Joint Ventures
Healthcare Reform Paving Way for More and Different Hospital Merger & Acquisition Activity
Non-profit hospitals in areas with large numbers of uninsured or other low-income patients have seen bad debts rise with the economic downturn. Financial difficulties make borrowing funds to improve facilities more challenging, and many of these hospitals are seeking partnerships with for-profit entities as a result.
In most cases, these deals must be approved by the state's Attorney General. Yet, some worry that the deals threaten the safety-net status of many of these facilities if the hospitals become concerned with making a profit.
Recent deals between non-profits hospitals and for-profit partners include:
- Private equity firm Vanguard's $417 acquisition of eight-hospital Detroit Medical Center
- Private equity firm Cerberus Capital Management's proposed acquisition of Massachusett's six-hospital Caritas Christi Health Care, a Catholic health system.
- LifePoint Hospitals' acquisition of Clark Regional Medical Center in Winchester, Ky.
- Community Health Systems's acquisition of Bluefield, W.Va.-based Bluefield Regional Medical Center as well as Mullins, S.C.-based Marion Regional Healthcare System.
- Ardent Health Services' acquisition of three-hospital Forum Health in Youngstown, Ohio.
The number of these deals is only expected to increase in the coming months as for-profits operators look to invest capital, which non-profits will continue to need, said analysts cited in the report.
Read the USA Today report on hospital mergers.
Read other Becker's coverage on hospital merger activity.
Report Finds Spending on Healthcare Mergers and Acquisitions Rises in Third Quarter; Hospital Transactions Surge
Renewed Hospital M&A Activity May Drive Surge in Joint Ventures
Healthcare Reform Paving Way for More and Different Hospital Merger & Acquisition Activity