Summary
The Proposed Merger between Presbyterian Healthcare and UnityPoint Health
Nick Thomas, the Associate Editor of the financial team at Becker’s Healthcare, recently discussed a proposed merger between New Mexico-based Presbyterian Health and Iowa-based Unity Point Health. The combined entity would have a revenue of 11 billion, and is an example of a trend of hospitals merging across geographically.
Background
Presbyterian Healthcare Services and UnityPoint Health have entered into a definitive agreement to merge, creating a new health system that will span across nine states. The merger is expected to close in the first half of 2022, subject to regulatory approvals and closing conditions.
Revenue
The combined entity would have a revenue of 11 billion, making it one of the largest nonprofit health systems in the country.
Providence Operating Loss
Nick Thomas also mentioned Providence, a hospital system in the Pacific Northwest that had a headline loss of 6.1 billion in 2020. Thomas reports that Providence has made significant strides in improving its financial performance, reporting a $1.7B operating loss in 2022.
Conclusion
The proposed merger between Presbyterian Healthcare and UnityPoint Health demonstrates the ongoing trend of hospital systems merging across geographically diverse regions. As healthcare systems continue to struggle financially due to the COVID-19 pandemic and other factors, mergers and acquisitions may prove to be an essential strategy for improving financial viability and providing high-quality care for patients.
Note: This is an AI generated transcript, not edited by a staff writer and is solely intended for educational purposes. If you have any questions/concerns, reach out to podcasts@beckershealthcare.com
This episode aired on 03/15/2023 and can be listened here.
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