Published by Becker’s Hospital Review
A community-owned hospital is often the largest asset of the community. Unfortunately, with decreasing reimbursement and climbing costs, more and more community hospitals have been struggling. Residents need a local hospital to remain operationally viable in order to protect local access to healthcare services. For this reason, an increasing amount of community hospitals have been looking to hospital operators or large health systems to partner and/or acquire them, evidenced by the influx in hospital mergers and acquisitions over the past few years.
Concern is high with hospital acquisitions, buyouts of community hospitals When a local hospital is acquired it can raise concerns among the residents, hospital employees and physicians. “Residents can be very leery of somebody coming in from the outside and buying their largest asset — the local hospital. Apprehension is high with staff, community residents and physicians,” says Jim Rolfe, managing director of VMG Health’s transactional services division.