- Between 2010 and 2018, 17 percent of unprofitable rural hospitals merged with another organization, while 7 percent closed, according to an analysis from Health Affairs using data from 325 unprofitable hospitals. Of the financially unstable hospitals that didn’t close or consolidate, about half became profitable over that span. Four rural hospitals have already closed this year, fueling discussions around policy changes and proposed legislation. More rural hospitals are expected to cut services, merge, or close as they manage higher labor costs and reimbursement cuts. (Article here)
- University of Michigan’s Michigan Medicine finalized the acquisition of Lansing-based Sparrow Health System on Saturday after receiving regulatory approvals. Under the acquisition, Michigan Medicine plans to invest $800 million into the struggling Sparrow system over eight years. The combined health system is now a $7 billion health system that operates more than 200 locations. (Article here)
April 4, 2023
M&A | Tea Leaves