As more provisions of the Patient Protection and Affordable Care Act roll out, many non-profit hospitals and for-profit hospital operators are finding innovative ways to grow and expand their revenue sources, according to Moody's Investors Service's healthcare quarterly report.
For example, six major non-profit hospitals and health systems — Cleveland Clinic, Geisinger Health System in Danville, Pa., Mayo Clinic in all three of its major locations, Mercy Hospital in Springfield, Mo., Scott & White Healthcare in Temple, Texas, and Virginia Mason Medical Center in Seattle — partnered with Wal-Mart Stores on commercial bundled payment strategies.
Moody's analysts expect more non-profit hospitals to move into other spaces beyond hospital-based services, much like San Francisco-based Dignity Health. Last August, Dignity closed on its acquisition of U.S. HealthWorks, which operates roughly 174 occupational health and urgent care centers in 15 states.
For-profit hospital chains have also been focused on diversifying their business strategies through unique hospital joint ventures, affiliations with primary care physicians and other relationships with outpatient providers and health insurers. For example, last year, Nashville, Tenn.-based Vanguard Health Systems purchased ProCare Health Plan, a Medicaid managed care company in Detroit that will complement its affiliate, Detroit Medical Center.
The major for-profit players are also teaming up with large non-profit organizations to "gain scale, pursue new strategic directions and effectively enter new markets," according to the Moody's report. Some of the most prominent for-profit/non-profit alliances include Franklin, Tenn.-based Community Health Systems and Cleveland Clinic, Brentwood, Tenn.-based LifePoint Hospitals' joint venture with Durham, N.C.-based Duke University Health System and Franklin, Tenn.-based IASIS Healthcare's joint venture with Milwaukee-based Aurora Health Care.
For example, six major non-profit hospitals and health systems — Cleveland Clinic, Geisinger Health System in Danville, Pa., Mayo Clinic in all three of its major locations, Mercy Hospital in Springfield, Mo., Scott & White Healthcare in Temple, Texas, and Virginia Mason Medical Center in Seattle — partnered with Wal-Mart Stores on commercial bundled payment strategies.
Moody's analysts expect more non-profit hospitals to move into other spaces beyond hospital-based services, much like San Francisco-based Dignity Health. Last August, Dignity closed on its acquisition of U.S. HealthWorks, which operates roughly 174 occupational health and urgent care centers in 15 states.
For-profit hospital chains have also been focused on diversifying their business strategies through unique hospital joint ventures, affiliations with primary care physicians and other relationships with outpatient providers and health insurers. For example, last year, Nashville, Tenn.-based Vanguard Health Systems purchased ProCare Health Plan, a Medicaid managed care company in Detroit that will complement its affiliate, Detroit Medical Center.
The major for-profit players are also teaming up with large non-profit organizations to "gain scale, pursue new strategic directions and effectively enter new markets," according to the Moody's report. Some of the most prominent for-profit/non-profit alliances include Franklin, Tenn.-based Community Health Systems and Cleveland Clinic, Brentwood, Tenn.-based LifePoint Hospitals' joint venture with Durham, N.C.-based Duke University Health System and Franklin, Tenn.-based IASIS Healthcare's joint venture with Milwaukee-based Aurora Health Care.
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