Healthcare Brew’s Post

🏥MedMonday Update🏥 The new year has begun with a surge in hospital and health system mergers and acquisitions. Notable developments include: Prime Healthcare plans to acquire Central Maine Healthcare, aiming to become the sole owner of the system's three hospitals, cancer center, and physician practices. Rady Children's Hospital-San Diego and Children's Hospital of Orange County have merged to form Rady Children's Health, a three-hospital system with multiple primary and specialty care centers. These moves highlight the ongoing consolidation trend in healthcare as organizations seek to enhance capabilities and expand their reach. You can read about this in the full article below. #HealthcareMergers #HospitalMergers #HealthSystemGrowth #HealthcareInnovation #HealthcareStrategy #MergersAndAcquisitions #HealthSystemConsolidation #HealthcareLeadership #HospitalIndustry #FutureOfHealthcare

How do you feel about the latest M&A activity in the for-profit sector? As a big fan of combining resources, boosting efficiency, and utilizing talent across various areas, I have to admit that some of these mergers and acquisitions make me a bit nervous. For instance, HCA is currently embroiled in an antitrust lawsuit for monopolizing acute care. While this is a regional issue and the hospitals involved aren't in that area, HCA's system includes over 186 hospitals. That's a lot! I'm not a fan of monopolies in business, and the idea of one in healthcare is even more concerning. Competition is good—it keeps everyone on their toes. But on the flip side, shared resources can be beneficial. Then there's Tenet, which has been selling hospitals and offloading debt, focusing more on ambulatory services and higher-margin businesses. Their sale to Novant wasn't too surprising and solidifies Novant's presence in the Carolinas. With CHS's recent sale, it looks like Novant might be on a buying spree. However, hospitals usually come with more debt and less collectible receivables than projected, so could Novant end up burdened with debt? If these hospitals were highly profitable, Tenet and CHS probably wouldn't be selling them. It's definitely something to ponder given Novant's aggressive acquisitions. What are your thoughts on these M&As? Maybe I think about this stuff too much. 😊 https://lnkd.in/e6pKFNed #Healthcare #BusinessNews #MergersAndAcquisitions #HospitalManagement #NovantHealth #TenetHealthcare #HCALawsuit #HealthCareMonopoly

Prospect Medical Holdings, Inc., a safety-net hospital operator owned by private equity firm Leonard Green & Partners (LGP), is preparing for a potential bankruptcy filing. The company has been in discussions with creditors to address its financial challenges. This situation highlights ongoing concerns about the impact of private equity ownership on healthcare providers, particularly those serving vulnerable communities. Prospect Medical Holdings, Inc. operates #hospitals and clinics across several states, focusing on providing care to underserved populations. The company's financial difficulties raise questions about the sustainability of private equity-owned healthcare facilities and their ability to deliver essential services. This development adds to the growing list of private equity-owned companies facing financial distress. Notably, several healthcare providers have experienced similar challenges in recent years, underscoring the complexities and risks associated with private equity investments in the healthcare sector. #healthsystems

Private equity involvement in health care, particularly in hospital acquisitions, has substantially grown in recent years. These acquisitions are typically effective at increasing net profit – but at what cost? Check out my latest article at Sleep Wake Advisor to learn more about the quality of patient care in the face of these acquisitions https://lnkd.in/eu4ey3ND #PrivateEquity #HealthCare #SleepWakeAdvisor

"Patient care experience worsened after private equity acquisition of hospitals. These findings raise concern about the implications of private equity acquisitions on patient care experience at US hospitals." https://lnkd.in/gp9kP4EK

According to a recent JAMA (Journal of the American Medical Association) research letter private equity firms invested $505 billion in healthcare acquisitions from 2018 to 2023. These financial infusions can enhance resources for care. However, these firms have occasionally sold the land and buildings of acquired hospitals, using the proceeds to repay investors and leaving hospitals to pay rent for facilities they previously owned. The research the authors conducted involved looking at the asset values of private equity purchased/acquired hospitals post-acquisition, comparing the same to a like group of hospitals that were privately owned, across the same timeframe. More here; https://lnkd.in/gZ6TmMaY

AccendoWave - A Pain #Data Company Conclusions and Relevance  Patient care experience worsened after private equity acquisition of hospitals. These findings raise concern about the implications of private equity acquisitions on patient care experience at US hospitals. https://lnkd.in/gy879Yik

Tenet's ambulatory business segment United Surgical Partners International saw big growth throughout 2023. Here are four notes on USPI's 2023 and fourth-quarter growth: 1. USPI's net operating revenues for the fourth quarter of 2023 was more than $1 billion, a 15.4% increase compared to the fourth quarter of 2022. 2. USPI's total net operating revenues for 2023 came to nearly $3.9 billion compared to more than $3.2 billion in 2022. 3. USPI's adjusted EBITDA for the fourth quarter of 2023 was $464 million, a 14% increase compared to the fourth quarter of 2022. 4. As of Dec. 31, USPI had interests in 461 ASCs (322 consolidated) and 24 surgical hospitals (eight consolidated) throughout 35 states.

one more news of transcation in healthcare space. KKR is re entering in hospital business with acquisition of 70% stake in Baby Memorial Hospital (BMH) for Rs. 2500 cr approx. , which indicates BV of Rs. 3,500 cr. BMH operates 1000 beds as of now and in phase of expansion. As per the News , FY 24 revenue was Rs. 120 cr with EBIDTA of Rs. 80 cr , either of one seems not correct. Per bed valuation Rs. 3.5 cr which seems high. I am not aware about revenue other than hospital busienss as well as add due to potential expansion which may have played a role in arriving the numbers Will await for more information for some stats on this deal. #m&a, #hospitalindustry https://lnkd.in/dN_tvype

🚀 Hospital M&A: Key Moves in the First Half of 2024 🚀 The first half of 2024 has been bustling with significant mergers and acquisitions in the hospital sector. From strategic partnerships to expansive acquisitions, these moves are set to reshape the landscape of healthcare delivery. 🔍 Key Highlights: Strategic Partnerships: Many hospitals are joining forces to enhance service offerings and patient care. Expansive Acquisitions: Major healthcare systems are expanding their reach, aiming to bring top-notch healthcare to more communities. Market Trends: These M&A activities reflect the dynamic and evolving nature of the healthcare industry. Stay informed on how these changes could impact the future of healthcare! #HealthcareMergers #HospitalAcquisitions #HealthcareIndustry #HospitalTransactions #PatientCare #BeckersHospitalReview