Marion Regional Healthcare System Acquired by Community Health System Subsidiary – More Join “For Profit” Publ
Posted Jul 10 2010 11:27am
CHS is the largest hospital company bought and sold on the stock exchange. We are starting to see more non profits moving to the “for profit” areas of business . Again with company subsidiaries sometimes we might miss who is actually the owner as it is one step up the ladder to see the ultimate owner as in this case whereby a subsidiary of CHS has made the acquisition. CHS mentions their QHR subsidiary on the website, which provides some online tools to answer some basic questions for anyone to use and query.
The website seems to offer a little bit of everything to include sales and merger transaction assistance. You can see from the screenshot below they are focusing on marketing help for hospitals experiencing financial issues. In addition to the hospitals under their own umbrella they consult and provide management/consulting services to another 150 hospitals that are independent of CHS ownership.
The acquisition will include negotiating for new physician recruits and capital investments. CHS has 122 hospitals in 29 states currently and you can see below they company generated over $12 billion in revenues, not sure what the profits were here, but this appears to be just the revenue generated only. We are starting to see more “for profit” acquisitions such as the one recently announced in Massachusetts.
How many non profits will we have left in time? BD
From the website of CHS
“Headquartered in a suburb south of Nashville, Tennessee, the organization is committed to building a network of thriving hospitals vital to the residents and economic development of the communities served. With the belief that community hospitals often suffer from a lack of capital and have difficulty recruiting physicians and retaining high levels of management expertise, the company has assisted local hospitals in meeting these challenges and has proven itself to be an established leader in this industry segment. For the fiscal year that ended December 31, 2009, CHS generated $12.1 billion in revenues.”
The acquisition includes 124-bed Marion County Medical Center, which, effective Wednesday, will operate as Marion Regional Hospital. The transaction also includes 92-bed Mullins Nursing Center, and nine local physician practices and clinics: Advanced Medical Associates Internal Medicine, Aynor Medical Center, Marion County Surgical Center, Marion Medical Center OB/GYN, Marion Medical Group Internal Medicine, Marion Pediatrics, Mullins Surgical Associates, Pee Dee Pediatrics and Total Family Care.
Marion Regional Healthcare System is a private, nonprofit organization that operates Marion County Medical Center, Aynor Medical Center and the Mullins Nursing Center. It also operates nine hospital-owned practices providing pediatric care, internal medicine, general surgery, family medicine, and obstetrics and gynecology.