Investment income resulting from a strong stock market has propped up many standalone hospitals’ balance sheets over the past two years, according to a recent evaluation by Juniper Advisory. In analyzing a sample of independent hospitals’ financials, Juniper Advisory found that investment income accounted for nearly half of the hospitals’ net margin.…
As health care has transformed from a nascent local patchwork of services to one of our country’s leading industries, hospitals hold steadfast to their missions that have roots going back a century or more.
The precursors of many of our country’s public and non-profit hospitals were almshouses or sanitariums created by municipalities or religious orders.…
As transactions between large systems become more common, and more strategically focused on patient concentration and needs rather than geographic boundaries, state regulators are taking a closer examination of hospital business combinations.
From California to Illinois to Florida, state attorney generals have applied increased scrutiny to recent hospital transactions, regardless of tax status or ownership type.…
Of the umpteen elements hospital leaders evaluate when considering the viability of a potential partner, quality is generally at the top of the list.
A larger partner can bring the scale, resources and expertise many smaller hospitals and systems seek to improve care quality for their community.…
Temple University announced Monday it has retained the services of Juniper Advisory to pursue strategic options for Temple University Health System, which include the possible sale of Fox Chase Cancer Center, neighboring Jeanes Hospital or both.
The move comes about a month-and-a-half after Temple’s Board of Trustees announced it had authorized a series of steps aimed at strengthening the health system’s finances and “preserve its ability to serve its mission.” One of those steps was authorizing the engagement of a financial advisor.…
Rural providers have been somewhat insulated by the transformation in the health care market over the past decade. Caught between understanding and implementing population health strategies, they are still heavily reliant on fee-for-service reimbursement models versus value-based care. Rural hospitals are fighting for their margins, with few resources available to pilot innovative care strategies or make capital upgrades.…
Financial difficulties are commonly the catalyst for hospitals to begin exploring partnership options. As Rex Burgdorfer, Juniper Advisory Vice President, outlines in his latest article “Valuing the Troubled Hospital”, court-led restructuring is an option often considered by those with liquidity constraints and significant financial liabilities.…
As mid-size health systems seek growth and meaningful scale, the most effective way to achieve this will be system combinations, and these will include those across state lines. The recently completed combination of Advocate Health Care of Chicago and Aurora Health Care of Milwaukee is an example of this kind of transaction cross-border combination.…
We note how health systems will likely “pay” for their newfound acquisition appetite, and review techniques that are being utilized. The potential for an increased pace of change is focusing greater attention on the terms, conditions, and value exchanged (financial and otherwise) in business combinations.…
Hospitals and health systems face an array of compounding pressures. Chief among these is a shift to population health and value-based care models that require health systems to not only continue to make investments in information technology, administration and care, but also take on additional financial risk.…
Healthcare executives expect their businesses to exceed 2018’s benchmarks and will largely use mergers and acquisitions to reach those expectations, according to a new [...]
Investment income resulting from a strong stock market has propped up many standalone hospitals’ balance sheets over the past two years, according to a [...]
The Indian River Medical Center (IRMC) in Vero Beach, Florida, will join the world-renowned Cleveland Clinic in a business combination expected to close by the [...]