An auction has been set for 10 a.m. on Dec. 16 for the assets of LRGHealthcare, including Lakes Region General Hospital and Franklin Regional Hospital, under a schedule agreed to in U.S. Bankruptcy Court in Concord as part of bankruptcy proceedings. Two weeks ago, LRGH, saddled with more than $100 million in debt, filed for reorganization under Chapter 11 of the federal bankruptcy code. Concord Hospital has offered to acquire LRGH’s assets for $30 million and run the facilities. This will serve as an initial bid that could go higher. LRGH has more than $100 million in real estate holdings alone.
Springfield has given the Peru and Spring Valley hospitals the OK to merge. A spokeswoman for the Illinois Health Facilities and Services Review Board said Thursday the regulatory body has approved a change of ownership for St. Margaret’s Health and Illinois Valley Community Hospital, clearing the way for the hospitals to consolidate health care operations.
Three Rivers Health, based in southern Michigan, and Beacon Health System, based in northern Indiana, have signed a Letter of Intent to have Three Rivers Health join Beacon Health System in the spring of 2021, pending final approvals. Three Rivers Health, a 60-bed facility serving St. Joseph and Kalamazoo counties in Michigan, and surrounding communities, offers a full complement of outpatient services along with specializations in orthopedics, emergency medicine, women’s health and rehabilitation services.
Tyrone Hospital has officially joined Penn Highlands Healthcare, effective November 1, following recent regulatory reviews and approvals. Now Penn Highlands Tyrone, this 25-bed, non-profit community hospital becomes the sixth hospital in the Penn Highlands Healthcare system. “Welcoming Penn Highlands Tyrone to the Penn Highlands Healthcare system represents another significant chapter for our organization, as well as our region,” said Steven M. Fontaine, Chief Executive Officer of Penn Highlands Healthcare.
Bayada Home Health Care — one of the largest nonprofit providers of in-home care and post-acute care services in the country — is expanding its already massive footprint. It’s doing so at a time when the need for home-based care is at an all-time high. On Thursday, the Moorestown, New Jersey-based company announced it is forming a new joint venture with Baptist Health, a faith-based, mission-driven health system in Northeast Florida. The new JV will be known as “Baptist Home Health Care by Bayada” and begin operations in early 2021, pending licensing and regulatory approvals.
Yavapai Regional Medical Center (YRMC) and Dignity Health have completed an affiliation, uniting two strong healthcare systems that are committed to creating healthier communities by providing accessible, affordable and innovative health services. The affiliation will scale best-in-class clinical services, recruit and retain primary care providers and top medical specialists, and align clinical operations to improve delivery of care. It will also bring to Yavapai County innovative medical technologies and treatments, as well as collaborative initiatives with existing community resources, which will expand YRMC’s ability to effectively serve and advocate for all people.
For better or worse, Wayne Smith is a dealmaker above all else. Those who’ve followed Smith through his more than two decades as CEO of for-profit hospital chain Community Health Systems describe him as competitive, yet disciplined. The deals he made shaped the trajectory of the company, from fewer than 40 hospitals up to roughly 200 at its largest—more than any other U.S. hospital chain for a time—and then contracting it down to its current 89. Smith, who will step down from the CEO post at year-end, will have spent the final leg of his tenure working to sell underperforming hospitals in an effort to pay down debt accumulated through buying them. And while some financial metrics have begun to look up, those who follow the industry say they don’t have a clear picture of what the future holds for Franklin, Tenn.-based CHS.
AtlantiCare is officially out from under the umbrella of Geisinger, taking with it one-quarter of the health system’s discharges. Monday’s news comes after Geisinger agreed in March to drop its legal challenge to AtlantiCare’s departure because the two sides had reached a deal. At the time, the systems said it would still take up to 18 months to finalize the transaction, a process that ultimately took just seven months. The agreement the systems reached in March required AtlantiCare to repay or refinance all of the outstanding debt Geisinger had lent AtlantiCare and that Geisinger had borrowed on AtlantiCare’s behalf as of the deal’s close, according to a bond document. That debt stood at $227 million as of March 31.
Holy Spirit Health System and its 2,600 employees officially became part of Penn State Health on Sunday. Penn State Health hasn’t revealed financial terms of acquiring Holy Spirit from Danville, Pa.-based Geisinger Health, which has owned it since 2014. Penn State Health and Geisinger had been awaiting government approval for the transaction. The Federal Trade Commission and the Pennsylvania Attorney General, which typically work together to review or challenge such transaction have made no move to block it, according to Penn State Health spokesman Scott Gilbert.
Hospitals are holding off as long as possible before halting procedures to make room for fresh waves of Covid-19 patients, a reversal from earlier this year when facilities postponed care, leading to steep financial losses and public-health risks.
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