Trevor Fetter, CEO of Dallas-based Tenet Healthcare Corp., believes hospital operators and large health systems have the edge in today's market as independent hospitals struggle with rising costs and lower reimbursement, according to a Bloomberg report.
Mr. Fetter told Bloomberg standalone hospitals and health systems will have to look at the merger and acquisition market, cut services or close operations altogether if they want to survive in today's healthcare economy. "This business has gotten tougher and tougher," Mr. Fetter said. "We can do [cover expenses] across this vast portfolio. I can't imagine if you're trying to run a mid-sized, independent hospital how you figure this out."
Tenet, which posted $28 million in profit in the third quarter, owns and operates 77 hospitals across the country. In October, it closed on its acquisition of Vanguard Health Systems for $4.3 billion, which includes the assumption of debt.
Mr. Fetter said Tenet will continue to seek hospital acquisitions in the right markets, such as Texas, California, Florida and other areas where Tenet is already one of the main hospital providers. He did not indicate how many deals the for-profit hospital operator would complete over the next year.
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