In the1990s, healthcare systems merged at unsustainable rates. Today, with dropping inpatient volumes, systems are exploring multiple ways to stay relevant, such as entering the outpatient space, rethinking partnerships and expanding access to care through technology.
Transactions & Valuation Issues
In the first quarter of 2019, the quarterly volume of announced acute care hospital merger and acquisition activity reached its lowest point since the fourth quarter of 2009, according to an analysis by Ponder & Co.
Ripley, W. Va.-based Jackson General Hospital is set to be the fifth hospital to join the West Virginia University Health System in two years, according to WVMetroNews.com.
The total number of healthcare mergers and acquisitions hit a record high in 2018, and several deals have closed so far this year.
Fort Bragg, Calif.-based Mendocino Coast District Hospital's board of directors will seek a potential lease or sale, the hospital's interim CEO said April 11, according to the Fort Bragg Advocate-News.
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Elite Medical Center, a Las Vegas-based acute care hospital that some experts say is operating similarly to a 24/7 freestanding emergency room, doesn't contract with any payers, according to the Milbank News.
Brentwood, Tenn.-based Quorum Health has completed the sale of Scenic Mountain Medical Center, a 146-bed hospital in Big Spring, Texas, to Dallas-based Steward Health Care.
Centene Corp.'s proposed $17.3 billion acquisition of WellCare Health Plans would make Centene the third-largest publicly traded managed care provider, according to S&P Global Market Intelligence's analysis of membership data.
Charlotte, N.C.-based Atrium Health signed a memorandum of understanding to build an academic healthcare system with Wake Forest Baptist Health and Wake Forest University, both in Winston-Salem, N.C.
Thorek Memorial Hospital in Chicago has filed an application with the Illinois Health Facilities and Services Review Board to buy a hospital located just a few miles away, according to the Chicago Tribune.