Acquisitions can Save Failing Hospitals and Fuel Services, AHA Argues with New Report

The American Hospital Association has tapped a new industry analysis highlighting several acquired hospitals’ poor financials as its latest evidence in support of unfettered provider consolidation, Fierce Healthcare reports.

The report, prepared for the trade group by industry analyst firm Kaufman Hall, shows that financial distress was cited as a key factor in roughly 20% of 463 analyzed hospital acquisition deals closed between 2015 and 2019.

One in three of these distressed organizations had declared bankruptcy prior to the deal, according to the report. However, following the close, more than 80% of those hospitals “were saved from bankruptcy and remain operational today,” Kaufman Hall wrote. Read more.

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