Again we are seeing the changing face of hospitals in the US today, more moving over to the for profit side with this latest acquisition from Community Health of 3 Catholic Health Partners. Community Health owns and operates hospitals all over the US. Not too long ago they were one of the partners who created a venture fund with 2 other hospital companies.
Recently in the Boston area we saw some similar type of actions with for profits buying up hospitals run by Catholic healthcare. In addition, Community Health Systems from what has been reported in the news has an all out effort going to attempt a hostile take over of Tenet, another large hospital system and the link below talk about even pushing a suggestion for naming board members, which is pretty gutsy I think and this was in follow up to an offer Community made for a non solicited bid to Tenet.
Tenet Tells Community Health Thanks But No Thanks in Response to Their Submission of 10 Nominees for Tenet’s Board of Directors
It certainly is beginning to look like the religious affiliations with hospitals is beginning to dwindle a bit in the US. This is going to be a delicate balance all the way around as normally business cuts out the non profitable areas of operation and we have seen this in California with Prime Healthcare. I live near several of their hospitals and from just an observer’s point of driving by, the once crowded parking lots are pretty empty these days and you can roll bowling balls through them. Prime does not normally negotiate contracts with insurers and thus we end up with hospitals that have what I term a “Cadillac ER” room operation as that’s where the money is made. It does make one start to wonder if in time will there be very many non profits left? BD
Community owns and operates 10 hospitals in Pennsylvania, including 368-bed Wyoming Valley Health Care System in Wilkes-Barre, which is less than 20 miles away.