Hospital merger & acquisition (M&A) activity in the second quarter of 2018 decreased by nearly 50 percent from the first quarter according to a M&A tracking company. Analyses by other companies that track M&A activity reported a similar decrease. However, physician practice acquisition remained steady in the second quarter. Irrespective of these numbers, […]
We’re continuing the summary of the Moody’s Investors Service report on integrated planning and financial viability. Last week we covered investments in off-campus sites while maintaining high-margin inpatient services. Today we focus on the remaining components of integrated planning: digitalization, investment in talent and operational and funding flexibility. Digitalization Information technology investments […]
Evolving industry pressures will require hospitals/systems to focus on their business strategies and prudent allocation of limited capital and financial resources. Financial viability and competitiveness will require expanded patient access, digital efficiencies, top talent and financial flexibility. Moody’s Investors Service analyzed each of the above components in its recent Sector-in-Depth, Flexibility, integrated planning key […]
Capital markets, which have been relatively stable over the last several years, have begun a slow but consistent rise in interest rates. This means healthcare organizations should prepare for a higher cost of capital. The outlook becomes confusing, however, because of “recent significant policy developments” from the current congress and administration, notes the author […]
As the healthcare market expands and evolves, the inherent risks also are increasing. These risks include: The shift from volume to value The rise of the consumer and expansion of consumer options New payment models Mobile strategies New entrants An aging population Continued political and regulatory uncertainty Whereas hospitals/systems have traditionally done well at […]
Several deal-tracking companies reported an increase in hospital transactions in the first quarter of 2018—from 25 to 36 transactions depending on the tracking company. All noted it’s the second highest number of quarterly transactions in the last 10 years. Transactions included: For-profit divestures Mega mergers worth more than $1 billion Announced transactions involving teaching […]
When hospitals merge or enter into transactions, or a larger health system acquires a hospital, due diligence becomes a step to the process. During due diligence, an organization can “look under the hood,” if you will, and take a very deep dive into the operations of a hospital to identify any significant red flags that […]
Now that the iProtean, now part of Veralon Symposium has concluded and we have a rich source of new material from our experts for the upcoming courses, we will from time to time feature select abstracts from our experts’ interviews. Subscribers will see new courses such as Health Care: We Have a Problem; Doing More […]
The head of the U.S. Health and Human Services (HHS) said recently that the department will aggressively push to implement value-based payment, extending beyond ACOs and bundled payment initiatives. “ . . . we want to look at bold measures that will fundamentally reorient how Medicare and Medicaid pay for care and create a […]
“Hospitals will face greater competition, risk of volume declines and margin erosion as the nation’s largest commercial health insurers aggressively pursue growth strategies that are aimed at lowering healthcare spending,” according to Moody’s Investors Service. Insurers’ strategies include: Acquisition of physician groups Acquisition of non-acute care services Tougher contract negotiations Greater restrictions on […]