Dive Brief:
- As hospitals and health systems begin to merge, there's only so long before those who don't get left out of the game of musical chairs. After all, hospitals that don't take action and continue to deteriorate financially tend to be less attractive to buyers from a balance sheet perspective.
- However, there are still options for financially stressed hospitals, Newport Healthcare Advisers' Joe Lupica told Becker's Hospital Review. He recommends that hospital leaders prepare for a wide variety of contingencies, and act upon them strategically, rather than waiting until they're on death's door.
- Fortunately, for troubled hospitals, there's still a "reasonable 3 to 5 year runway of significant merger and acquisition activity," said Carstan Beith, managing director of the health care investment banking firm Cain Brothers & Company.
Dive Insight:
While there are many hospitals in deep financial trouble right now, it seems that the consensus is that there are investors and hospital systems who still see strategic value in merging with those who are struggling financially. The experts who spoke to Becker's Hospital Review seem to believe that it's not too late for even deeply-troubled hospitals to arrange a merger or acquisition deal that keeps them on their feet. If your hospital is one of those that's teetering on the edge of financial disaster, don't be discouraged—there's still opportunities for partnership and acquisition out there.