Not ready to tie the knot

Cash woes stall not-for-profit merg­ers: an­a­lysts

Modern Healthcare - - Tale of the Tape - Joe Carl­son

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

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.