We have both sides with different stories and Steward said the numbers were worse than they were lead to believe and Mercy said their numbers were right up front…who knows. Steward is a venture capital firm so when they don’t see a chance to crank out the profit they may want, I could see that occurring. Also there’s the mention of the $9 million that Catholic East took out of the system and that may have had something to do with this as well. A couple months ago it gave up on Landmark Hospital in Rhode Island. The comments here are interesting though in the article with someone from Steward saying “if Mercy were to give us their hospital for free, we couldn’t make the numbers work”…so you be the judge. BD
Steward Healthcare Gives Up on Acquiring Landmark Medical Center in Rhode Island and Prime Healthcare Moves In For the Deal
Maybe private equity firms are seeing the real bottom line with hospitals and their finances…it’s not always a pretty picture. It’s kind of ironic that this group exists with PE firms having a “non profit” to figure out how to profit.
How Big Are Private Equity Investments in Healthcare – Large Enough to Create a “Non-Profit” Trade Association To Talk About How to “Profit”
There’s another solution on the way with signing a letter to open talks with Eastern Maine Healthcare systems though. BD
An executive at Steward Health Care System told presidents of Steward’s hospitals Monday that the Boston-based chain “unilaterally withdrew” from talks to acquire Mercy Health System in Maine after concluding Mercy had misrepresented its finances.
The account given in a confidential memo from Steward director of media relations Chris Murphy, obtained by the Globe, differed from a statement Steward and Mercy released jointly late Friday afternoon saying the letter of intent to merge had been terminated because the parties “were unable to come to a definitive agreement” during negotiations.
Also, he said, Mercy’s parent, Catholic Health East, withdrew $9 million in cash from the Maine hospital after Steward had signed a letter of intent to buy it.