Many health system mergers today are "all about leverage" when negotiating with payers, rather than significant cost savings or increasing market share, Charlie Shields, CEO of Kansas City, Mo.-based University Health, told the Kansas City Business Journal.
Transactions & Valuation Issues
Merger and acquisition transactions can often lead to job cuts, but that is not anticipated to be the case with Sayre, Pa.-based Guthrie Clinic's acquisition of the Our Lady of Lourdes Memorial Hospital system based in Binghamton, N.Y.
Here is a summary of hospital and healthcare merger and acquisition-related transactions from May:
Fort Wayne, Ind.-based Parkview Health System is to acquire Bryan, Ohio-based Community Hospitals and Wellness Centers, according to a June 8 filing.
Columbia-based University of Missouri Health Care signed a letter of intent to acquire Jefferson City, Mo.-based Capital Region Medical Center.
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Sayre, Pa.-based the Guthrie Clinic has agreed to acquire the Binghamton, N.Y.-based Our Lady of Lourdes Memorial Hospital system.
San Benito County leaders would like the bankrupt Hollister, Calif.-based Hazel Hawkins Memorial Hospital to start partnership discussions with neighboring Salinas (Calif.) Valley Health, but Hazel Hawkins said it is not ready, ABC and NBC affiliate KSBW reported June 7.
Roseville, Calif.-based Adventist Health has acquired the Bakersfield Heart Hospital for a nominal sum and is aiming to save 300 jobs there in doing so, according to a June 6 report from The Bakersfield Californian.
Inova Health System has acquired Annandale, Va.-based Northern Virginia Pulmonary and Critical Care Associates, which comprises nine physicians and two locations, according to the Washington Business Journal.
A number of states have attempted to pass laws recently to potentially curb what legislators say is inappropriate consolidation in the healthcare industry. Other states have pushed back on such legislation.