Not ready to tie the knot
Cash woes stall not-for-profit mergers: analysts
Not-for-profit hospitals today seemingly have every reason to pursue mergers, as prolonged financial strain and the passage of healthcare reform legislation have created more thirst than ever for operational efficiencies, economies of scale and geographic diversity.
Yet the mergers-and-acquisitions activity between not-for-profit systems has loped along at a sleepy pace recently, as compared with what’s been happening in the for-profit sector (See story, p. 6).
Unlike the for-profits, analysts say, not-forprofit systems simply don’t have the ready access to cash and long-term financial stability to consummate deals, even in cases where the seller is literally begging for a buyer. Mount Sinai Hospital, a 1,039-bed not-for-profit in New York, pulled out of talks last week to partner with the ailing 511-bed St. Vincent’s