Becker's Healthcare June 18, 2024
Financially stronger health systems are hesitant about acquiring weaker hospitals or systems, an M&A trend that is expected to continue as organizations continue financial turnarounds and work to steadily improve their operating margins after a financially challenging period, according to a recent report from ratings agency S&P Global.
Acquiring hospitals and health systems are thinking twice about taking on assets that would dilute already weakened financial profiles unless there is a particularly strong strategic purpose and clear path to turnaround.
For example, Duluth, Minn.-based Essentia Health and Marshfield (Wis.) Clinic Health System called off plans to combine into a 25-hospital regional health system earlier this year. Marshfield reported significant operating losses in 2023 and recently laid off about...
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