Modern Healthcare January 26, 2019
Healthcare providers—and all businesses for that matter—constantly debate whether to make short-term investments to maintain their core business or to put profits toward alternative revenue sources that hold potential long-term returns.
Those questions are even more pressing as health systems’ expenses climb and revenue falls. They’re also grappling with the reality of the hospital’s diminishing role as care—and revenue—shift to the ambulatory space. Investment income is keeping hospitals viable while operating margins wane, but spinning off new ventures can also be a potential buffer.
Ascension has made a concerted effort to build out its subsidiaries as it incrementally restructures. In its latest reorganization, the largest Catholic health system in the country eliminated its “healthcare” and “solutions” divisions, as well...
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