JRDWM has entered into a significant joint venture agreement with Pacifica Hospital of the Valley and its management/holding company, Southwest Healthcare Services, Scottsdale, Arizona. The JV is part of the strategic and synergistic growth of JRDWM in the healthcare industry. JRDWM will provide major equity and debt financing for Pacifica and will acquire additional Safety Net Hospitals in California and the Southwest U.S.
Geisinger Health and Evangelical Community Hospital reached a settlement with the Department of Justice (DOJ) in an antitrust case federal officials filed last year over “a partial acquisition” deal between the two health providers. Officials alleged Geisinger and Evangelical are close competitors for inpatient general acute-care hospital services for patients in a six-county area in central Pennsylvania, accounting for approximately 70% of the market. Under the terms of the proposed arrangement, Geisinger will cap its ownership interest in Evangelical at a 7.5% passive interest.
Ten transactions involving hospitals and health systems have been announced, finalized or advanced in the last three weeks, according to a list compiled by Becker’s Hospital Review.
Flint, Mich.-based Insight has entered into a non-binding agreement to acquire Mercy Hospital & Medical Center on Chicago’s Near South Side. The deal is pending regulatory approval, but if it goes through, it would keep open a safety net facility that had threatened to close. Under the deal, terms of which are still being negotiated, a unit of the biomedical technology company, called Insight Chicago, would operate Mercy as a full-service, acute care hospital, Mercy said in a statement today. Insight intends to file an application with the state later today, the statement says.
The Blessing Health System officially taken over ownership of the former Keokuk Area Hospital, which was renamed Blessing Health Keokuk. Ownership of the hospital from UnityPoint Health to Blessing Monday. The two groups announced last October that they have signed a memorandum of understanding outlining a plan to transfer the affiliation of the hospital to Blessing. Unity Point announced it would take over Keokuk Health Systems, which included the hospital, in 2016.
Froedtert Health and Holy Family Memorial announced Monday the official start of their affiliation agreement. The agreement was initially announced on Jan. 6 of this year and closed at midnight on March 1. The finalized agreement calls for Froedtert Health to partner with Holy Family Memorial to deliver coordinated, high-quality, academic health care in Manitowoc County. Holy Family Memorial will operate as part of the Froedtert & the Medical College of Wisconsin network and will maintain its Catholic identity under the sole sponsorship of the Franciscan Sisters of Christian Charity, Inc.
Tower Health has been hit with another bond downgrade as its losses continue. On Monday, Fitch Ratings Inc. downgraded the West Reading-based health system to B+, a highly speculative junk bond. The outlook remained negative. Tower has $1.3 billion in long-term debt, which is secured by a pledge of gross revenues from Tower Health, Reading Hospital and five Philadelphia area hospitals acquired from Community Health System in 2017. Last week, Tower told staff it is looking for a partner to buy the whole system.
Recent trends in Centers for Medicare and Medicaid Services (“CMS”) regulations as well as commercial payor reimbursement policies demonstrate new enthusiasm from payors to guide their enrolled providers and plan beneficiaries to lower-cost settings outside of the hospital and relatedly to restrict health systems and physicians from retaining elective outpatient surgical services in the hospital setting.
The Federal Trade Commission announced today that it will no longer challenge the merger between Einstein Healthcare Network and Jefferson Health, posing no further barriers for the two historically linked academic medical centers to combine efforts to advance their shared healthcare mission in the region. This will expand Jefferson from 14 to 18 hospitals, improve health education and research opportunities and will bring together two of the nation’s top inpatient rehabilitation hospitals – the MossRehab/Moss Rehabilitation Research Institute and Jefferson Health- Magee Rehabilitation.
The Covid-19 pandemic has accelerated a movement already underway as a combination of sensors and artificial intelligence help move patients out of emergency rooms and doctor’s offices.
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