Miami Fund Charts $300M Push From Hospitals Into Housing https://trib.al/Wj5xnpv
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Senior Program Officer, Transforming Health and Healthcare. RWJF. Working towards a future where health is no longer a privilege but a right.
How is this legal? According to the Private Equity Stakeholder Project, this PE-owned safety-net hospital chain distributed 457 million in dividends to its PE owners while having, that same year (!), a net loss of 244 million (and 1 day cash on hand). Then they attempt to sale the hospital chain for 12million to the minority owners.. leaving them with 1.1Billion in debt that paid the outrageous dividends in the first place. This article gives the best 101 I've seen on "Dividend Recapitalization" and "Sale Leaseback Transactions" to extract capital from the healthcare of marginalized populations.
Prospect_Primer_Nov-2022.pdf
pestakeholder.org
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"From facility closures to compromised care, it's now a familiar story: private equity buys out a hospital, saddles it with debt, and then reduces operating costs by cutting services and staff — all while investors pocket millions,” warns Sen. Sheldon Whitehouse. In their hunt for quick profits, private equity firms are increasingly swooping in to purchase hospitals, clinics and care centers nationwide. And often it results in elimination of key services, health care facilities shutting down, experienced staff being laid off, and more. The Senate Budget Committee is currently investigating private equity’s impact on the health care system. The health of families and the well-being of communities needs to come first. We need federal action that puts people over profit. Read more here > https://bit.ly/3GEnYvk
Senators probe private equity hospital deals following CBS News investigation
cbsnews.com
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PE: Predictable Entropy? I am not knowledgeable about the companies or hospitals referenced in this article. However: “Private equity firms can negotiate higher prices and boost revenue and discipline, including in the medical sector.” Comment: Really? Related to prices and revenue, how? Prices/ charges do not matter, particularly for Medicare and Medicaid which were most of the payer mix for the hospitals cited in the article. For commercial payers, why would they raise rates for PE firm owners/operators? “And the one thing private equity guys don’t like is unknown variables…” Comment: If that’s your acquisition criterion, avoid health care. “But now, some of the industry’s favorite profit-making tools — like selling a hospital’s property for quick cash and then leasing it back — are under scrutiny for piling debt on already-struggling facilities.” Comment: This tactic has nothing to do with delivering excellent patient care. Balance sheet gymnastics are rarely sustainable. “Prospect bought the hospitals … including the 168-bed Delaware Memorial, in 2016. Prospect was the only bidder.” With only one bidder, the future challenges were evident. “But so far its investment hasn’t worked out so well for either Prospect or the hospitals. Delaware Memorial and Springfield Hospital closed last year. The remaining ones went up for sale, but Prospect has failed to find a buyer for its assets, including Delaware Memorial’s once-busy emergency room that served low-income patients until shuttering in November.” Comment: The appropriate sequence is: Market, Strategy, Structure: This article addresses deals and flipping (structure), and nothing about a business plan and rationale. Regrettably, health care access in urban and rural areas are deteriorating. The author cites ineffective PE firms, but is the core reason government payment levels that are below costs, even for efficient operators? #hospitals #healthcare #privateequity
Private Equity Is No Longer a Reliable Last Resort for Troubled Hospitals
bloomberg.com
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' How wealthy investors got rich looting America's needy hospitals In community after community, the hospitals keep closing. In 2018, it was Northside Regional Medical Center in Youngstown, Ohio. In 2019, it was Ohio Valley Medical Center in Wheeling, West Virginia, along with East Ohio Regional Hospital across the river in Martins Ferry, Ohio. That November, St. Luke's Medical Center, which had treated patients in Phoenix for more than a century, shut its doors. In 2020, as the pandemic hit, it was one in Massachusetts and another in West Virginia. Followed by four more — in California, Pennsylvania, and Texas — over the next three years. Other hospitals are teetering on the brink. In 2022, Conemaugh Nason Medical Center in Pennsylvania announced it was ending OB-GYN deliveries, leaving some mothers-to-be to travel almost an hour to give birth. Last year, Glenwood Regional Medical Center in Louisiana was ordered by the state to turn away patients because of inadequate supplies and staffing levels. In addition to their financial struggles, all of the hospitals shared three things in common. They all served low-income communities that suffered from a lack of access to healthcare. They were all owned at various points by for-profit investors, including leading private-equity firms like Cerberus, Leonard Green, and Apollo. And in a move that stripped the hospitals of one of their prime assets, the owners had sold the land beneath the facilities to a little-known real-estate investor called Medical Properties Trust. MPT, which has purchased some $16 billion of hospital real estate over the past two decades, now bills itself as one of the world's largest owners of hospital beds. For many of the hospitals, the deals proved disastrous. Once their real estate was sold to MPT, they were forced to pay rent on what had always been their own property. That added to the massive debt burdens already placed on the hospitals by their for-profit owners, deepening their financial woes. It also deprived Americans of desperately needed healthcare and put lives at risk — all while enriching some of the world's wealthiest investors. ' cont'd in the comments section below: https://lnkd.in/ev-FKwzz
The plundering of America's hospitals — Business Insider
apple.news
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Morgan Stanley Infrastructure Partners, Pacific Equity Partners, QIC, and Intermediate Capital Group (ICG) Bid $500M+ for Cura Day Hospitals Group. Australia’s biggest private hospital operator, Ramsay Health Care, has also lobbed a first-round offer. Cura makes $40m a year at the earnings line and is slated to fetch a $500m-plus price tag for owner Frankfurt-listed healthcare giant Fresenius Medical Care. Cura was founded in 2008 by doctors and management, with private equity investor Archer Capital Pty Ltd as a shareholder. Cura owns day surgeries, eye surgeries and endoscopy units across the East Coast and in Perth, Tasmania and Adelaide. As this column reported, at least 20 parties took preliminary sale documents, attracted by its foothold in a fragmented industry and the lower operational costs incurred at day surgery businesses compared to hospital owners. #PEInsights #privateequity #acquisition #healthcare
Morgan Stanley, Pacific Equity Partners, QIC, ICG, & Partners Infrastructure Bid $500m+ for Cura Day Hospitals | Private Equity Insights
https://pe-insights.com
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Client Partner | Strategic Account Manager | Trusted Executive Advisor | Drives Digital Transformation Rev in Technology l SaaS Software, Consulting Services, Generative AI/ML, Data Analytics, Robotics
Private equity (PE) firms such as Leonard Green & Partners have quietly been buying up struggling hospitals and then loading them up with massive debt to use the proceeds to pay shareholders more than half a billion dollars in dividends. "Nearly 400 U.S. hospitals are owned by private equity investors.." I've seen the presence of PE grow over the years in the healthcare industry, and the final outcome for these hospitals is never good. #privateequity #healthcareindustry https://lnkd.in/ePQTWfRD
‘Shell game’: When private equity comes to town, hospitals can see cutbacks, closures • Stateline
https://stateline.org
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Exciting News! MyTown Health Partners (MTHP) is excited to announce our strategic partnership with St. Camillus Urgent Care & Family Practice! This acquisition represents a significant milestone as we extend our mission of compassionate care to medically underserved populations in Kentucky. Matt Flynn, CEO of MyTown Health Partners, expressed his enthusiasm, stating, "We are thrilled to welcome St. Camillus Urgent Care & Family Practice into the MyTown Health Partners family. The name 'St. Camillus' itself is synonymous with a focus on the care and support for those in need, perfectly resonating with our mission of ensuring compassionate care to underserved populations. Through this acquisition, we aim to amplify our efforts and expand our presence into our fifth state of operation." Keith Evans, co-founder of St. Camillus, shared his thoughts, stating, "The acquisition of St. Camillus by MyTown Health Partners is a perfect alignment of vision between the two companies. This merger will enable St. Camillus to expand its services and capabilities throughout western Kentucky. In my mind, it's a win for both entities and the community at large." Headquartered in Pittsburgh, Pennsylvania, MyTown Health Partners will identify and partner with leading rural and urban healthcare providers who wish to pursue a strategic partnership with the capital resources and expertise to invest in their practice infrastructure and position them for continued growth in their local markets. Please join us in celebrating this milestone as we embark on a journey to deliver compassionate care to those in need. Read the full story here: rb.gy/86fbv #MTHP #HealthcareExpansion #StCamillus #UnderservedPopulations #HealthcarePartnership #PatientCare #KentuckyHealthcare #CompassionInAction
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Senators probe private equity hospital transactions When private equity companies acquire or invest in hospitals, their main motive is to generate financial returns for the investors significant enough to be able to cash out in the usual five year timeframe. A major strategy of PE is to cut costs and operate as lean as possible, a business strategy I subscribe to. On the other hand, PE firms generally put profits before patient care, looking to "maximize" profits. Healthcare is unlike traditional for profit businesses with tremendous variations and a multitude of competing forces. I have personally experienced a PE company swoop into a town with a struggling hospital, acting like and thought to be the white knight. Town members were relieved that the hospital was going to avoid closing, only to find that the hospital eventually closed three years later. Vendors were not paid, employees were devastated that the hospital closed. So goes the hospital, so goes the town. Glad to see these PE firms being scrutinized including Prospect Medical Holdings. Just look how this company operates their three hospitals in CT, they are all on life support and the state has assigned a financial monitor as at one of the hospitals, surgeries were being cancelled due to lack of supplies, vendors were not being paid. #Privateequity, #proftsfirst, #patientcaresuffers, ##greed, #suckthelifeoutofahospital https://lnkd.in/esdxtk2p
Senators probe private equity hospital transactions
beckershospitalreview.com
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Interesting article
A must-read brand new article by someone passionate about uncovering the shady private equity transactions in healthcare and other industries: https://lnkd.in/eBVXbp6E. While most corporate healthcare journalists (like those from Bloomberg, Forbes, Fortune, Axios) appear to have cozy relationships with private equity firms, with some even engaging in a "revolving door" practice, Bethany McLean stands out. She is one of the few nationally acclaimed journalists and world renowned authors who remains truly unbiased and never hesitates to reveal how private equity firms enrich themselves at the expense of patients. The primary issue with private equity lies in its use of leverage—borrowing significantly more than they have in the hopes of realizing substantial profits. Unfortunately, more often than not, these deals go south, and it’s the patients who suffer the consequences. As outlined in my recent research, the largest leveraged buyout that corporate journalists seem to avoid investigating is General Catalyst acquiring Summa Health. This deal allegedly involved borrowing a sweet $1 billion that General Catalyst doesn’t have: https://lnkd.in/ezsaQMj6.
Why America's hospitals are on life support
businessinsider.com
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Credit Bureau Systems: Specialty Revenue Cycle Management & Business Process Outsourcing Solutions Provider
As a growing number of healthcare providers struggle, many are failing - especially those that serve low-income communities with limited access to healthcare. What do these hospitals have in common? They were owned at various points by for-profit investors, including private-equity firms like Cerberus, Leonard Green, and Apollo. These investors stripped the hospitals of one of their prime assets by selling the land beneath the facilities to a little-known real-estate investor called Medical Properties Trust. MPT has purchased $16 billion worth of hospital real estate over the past two decades and now bills itself as one of the world's largest owners of hospital beds. The result? Patients are left with limited healthcare options, and investors make a profit. When hospitals sell their land, investors get rich and patients pay the price. That's the takeaway from a recent report by Business Insider. #ruralhealthcare #privateequity #consumerprotection #healthcarecoverage #accesstohealthcare #healthcareinvestment #forprofithealthcare #cerberus #leonardgreen #apollohospitals #medicalpropertiestrust #healthcareregulation
Why America's hospitals are on life support
businessinsider.com
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