Keckley Report June 28, 2021
Investor-owned hospitals play a major role in U.S. healthcare. Per the American Hospital Association, of 5141 U.S. community hospitals, 1233 (24%) are now owned by an investor-owned hospital operator—up from 1013 (18%) a decade prior.
They operate in urban, suburban and rural settings, and pay taxes. The investor-owned hospital playbook is simple: operate efficiently. Deploy capital strategically. Exit unprofitable markets promptly. Optimize revenue and pricing. Avoid fads and trends. Manage relationships with physicians and payers. Meet shareholder expectations. And it’s worked: for example, since January 2021, the profitability of HCA (HCA +26%), Tenet (THC +75%), and Community Health Systems (CYH +114%) have outperformed the overall markets (NASDAQ +11%, Dow +14%, S&P 500 +14%) and analysts think market conditions are favorable...
Today's Sponsors
Today's Sponsor