Hospitals Increasingly Targeted for M&A in 2015

More hospitals were targeted for mergers and acquisitions in the first half of 2015 than occurred in the first six months of each of the previous two years, according to a new analysis.

Forty-nine transactions targeting U.S. hospitals were announced in the first half of 2015, according to an analysis this week by Kaufman, Hall & Associates. That total was an increase from the 43 hospital transactions announced in the first half of 2014 and 46 over the same period in 2013.

“We are not surprised by this increase in M&A activity, as hospitals and health systems work to achieve goals such as optimizing their delivery networks, enhancing efficiency, and solidifying market position,” said Kit Kamholz, managing director at Kaufman Hall.

The 2015 takeover activity was comparable with that detailed in a July report by Irving Levin Associates, which was based on signed “definitive agreements” and which identified 46 hospital mergers and acquisitions.

Both tracking firms identified Ventas Inc.’s $1.8 billion acquisition of Ardent Medical Services from Welsh, Carson, Anderson & Stowe as the biggest deal of the second quarter.
Future Impacts
The higher volume of deals mostly preceded the late-June King v. Burwell U.S. Supreme Court decision that boosted for-profit hospital stocks, as well as […]

By |August 28th, 2015|Industry News|Comments Off

Pennsylvania expands CHIP coverage

Pennsylvania families that faced penalties for Children’s Health Insurance Program coverage that did not meet minimum requirements set by the Affordable Care Act are in the clear after Gov. Tom Wolf on Thursday said the state expanded its CHIP program.

Pennsylvania families that faced penalties for Children’s Health Insurance Program coverage that did not meet minimum requirements set by the Affordable Care Act are in the clear after Gov. Tom Wolf on Thursday said the state expanded its CHIP program.

“Currently, only CHIP policies where the families pay the entire cost of the premiums must meet these enhanced benefit requirements,” Wolf said in a statement. “However, I believe it is important that all Pennsylvania children have access to the best healthcare possible, and so I am implementing this requirement to provide enhanced benefits for all 148,000 Pennsylvania children covered by CHIP.”

Under the new rules, CHIP plans are barred from setting dollar limits on essential health benefits. Those include hearing aids, pediatric vision, dental and orthodontic services and durable medical equipment. Previously, the Pennsylvania plan set $1,500 annual limits for orthodontics and $5,000 annual limits for medical equipment.

The change also means services such as plaque control programs, oral hygiene education, dietary instruction […]

By |August 28th, 2015|Health Reform|Comments Off

Outlook for not-for-profit hospitals gets first upgrade since 2008

Not-for-profit hospitals are on stable financial ground again after several years of navigating a rocky business environment.

For the first time since 2008, credit rating agency Moody’s Investors Service upgraded the outlook on not-for-profit hospitals to stable from negative.

The sector is benefiting from increased patient volume and a reduction in bad debt, which are having a positive effect on operating cash flow, Moody’s said in a report Wednesday. The impact is most evident in states that expanded eligibility for their Medicaid programs. In these states, self-pay patients account for only 3.8% of revenue compared with 9.2% in non-expansion states.

Hospitals have struggled with flat or declining admissions since at least 2009, but in late 2014, patients began to return. A virulent flu season, pent-up demand among the newly insured and employment growth all contributed to the increase in volume, Moody’s said.

Those factors have buoyed hospitals even in states that did not expand their Medicaid rosters. A Modern Healthcare analysis of not-for-profit hospital finances for fiscal 2014 found that the average operating margin in Medicaid expansion states was 3.2%—not noticeably different from the 3.1% in non-expansion states.

As a result, not-for-profit hospitals are reporting growth in operating cash flow that is at a […]

By |August 27th, 2015|Industry News, Medicare/Medicaid|Comments Off

 

Why Clients Trust RevCare

      • CMS-approved Certified Application Counselor (CAC) organization, helping consumers navigate the Marketplace
      • A leader in partner-based strategy and customized solutions for healthcare revenue cycle management
      • Exceptional people committed to your bottom line and patient experience
      • 100% healthcare focused with guaranteed performance
      • Cutting edge technology and processes for accurate, competent and credible service
      • Ohio Hospital Association Corporate Partner

We’re Proud of What We Accomplish

RevCare, FirstCredit and PayMed celebrate ten years in a row as one of northeast Ohio’s top performing companies: a ten time NEO Success Award Winner.
Inside Business Magazine, March/April 2013
Small Business Entrepreneur of the Year
Greater Akron Chamber,
The companies of FirstCredit are multiple year winners of the Weatherhead 100 awards, honoring the fastest growing companies in northeast Ohio.
Case Western Reserve University, Weatherhead School of Management
The OHA welcomes RevCare/FirstCredit, Inc. to the Ohio Hospital Association’s corporate partner program.
Ohio Hospital Association,