The 2015 Forecast Is Sunny For For-Profit Hospitals
Modern Healthcare reports that investor-owned hospitals are better positioned and "enjoying momentum" from the health law more than are not-for-profits. Meanwhile, ProMedica is appealing an anti-trust decision to the Supreme Court that could have national implications related to the market trend of hospital consolidation and acquisitions.
Why For-Profit Hospitals Are Poised For A Strong 2015 (And Not-For-Profits Aren't)
Analysts expect another strong year from the for-profit operators because they've cut costs and adopted new initiatives to bring in more patients. ... The report contrasts with the negative outlook Fitch and other credit-rating agencies have placed on not-for-profit hospitals. Management teams at investor-owned chains kept a tight rein on expenses over the past year and were conservative with how they managed capital, said Megan Neuburger, an analyst at Fitch who covers the for-profit sector. (Kutscher, 1/6)
ProMedica Takes Antitrust Battle To Supreme Court
ProMedica has appealed to the U.S. Supreme Court in its battle to keep a hospital it acquired more than four years ago. A lower court ruled the acquisition violated antitrust laws. It's a case with potential implications nationwide as more hospitals seek to expand through consolidations and acquisitions in efforts to improve care and lower cost. They're faced with the challenge of doing so without violating antitrust laws. The Ohio health system filed a petition with the U.S. Supreme Court in late December, asking the court to hear the case. (Schencker, 1/6)