Deal falls through with the purchase of a string of hospitals.
The hospital in question relies mostly on charity care — it’s also a sanctuary town.
A group of investors wanted to buy several Catholic hospitals. The investors wanted a smaller hospital to partner with a much larger hospital about 4 miles from there; the larger hospital turned the suggestion down.
The group of investors that is backing the deal owns Dave and Busters, the Carribean Burger King chain and a chain of drug stores. In total they own about 3 dozen businesses — and none of them entail owning and operating a hospital.
This is already a bad deal — you know zero about the health care industry. Just based on that it won’t be a success.
Factor in most of the clients that are admitted to that hospital are non paying clients — the state has been pumping aid into this hospital for years. The 39M of debt that they have is guaranteed by the state.
There is a weeks’ worth of money on hand — and there is also the pension program that is short on money.
Last year, a group of investors bought a hospital. When the buyers breezed in with their bags of money a year ago, they promised the moon; they were going to upgrade the facility and add many many more beds to the current facility. They guaranteed that there would be many more births at the hospital and they said they’d have a prosperous and florishing oncology program in place.
None of it happened. They too have about a week’s worth of money and paychecks have already bounced.
Add many more beds???
We already have a surplus of hospital beds in this state — 20 years ago, the state recomended the closure of about a dozen hospitals — and one of them that was suggested for closing is the hospital in the link I posted.
Investors that buy out hospitals? Not a good idea. I can’t see how it will benefit the client. And if you know nothing about owning and operating a hospital, I don’t suggest you find out you know squat about buying and operating a hospital by actually going through with the purchase.
And how are you going to turn a profit when your clients are not actively making a purchase out of their own pocket?? Nearly every hospital in this area is getting by on charity care. We’re stretched to the thinnest — you will not turn a profit if all you have coming in is a handout from the state.
I wonder if the potential buyers of that string of hospitals know anything about New Jersey or the demographics of each town that the hospitals are in. I wonder how much of a feasibility study was conducted at all?
Private investors purchasing a hospital?
How does it benefit the client??
I can’t see how this will benefit the client. I predict it will come to nothing but a bad end.