Dive Brief:
The risk of healthcare facilities defaulting on their debt has dropped significantly from nearly a year ago, according to a new report from S&P Global Market Intelligence.
The median probability of default for healthcare facilities within the next year was just 0.9% this week. In late April 2020, at the height of uncertainty from the COVID-19 pandemic, it was 8.1%.
Despite returning to more stable footing, the S&P report noted that most U.S. hospitals operate on thin profit margins in an environment beset with uncertainty by high-stakes policy debates.
Dive Insight:
The early weeks of the COVID-19 pandemic a little less than a year ago was a time of great financial uncertainty. Before the passage of the Coronavirus Aid, Relief, and Economic Security Act in March and other supplemental legislation that gave assistance to providers, hospitals and other healthcare facilities were particularly vulnerable due to having to all but eliminate elective procedures for weeks
Picwell Announces Addition To Board Of Directors
Company announces appointment of Jon Kaplan, Managing Director and Senior Partner at Boston Consulting Group (BCG)
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PHILADELPHIA, Feb. 23, 2021 /PRNewswire/ Picwell, Inc. has today announced that Jon Kaplan has been appointed to the company s Board of Directors.
Kaplan joins Picwell s Board of Directors with over 25 years of experience in the healthcare industry. Since 2007, he has served as Managing Director and Senior Partner at Boston Consulting Group (BCG), the second largest strategy consulting firm in the country.
Throughout his career Jon has been advising healthcare organizations about evolving markets, strategies and operating models. He has also been an adjunct professor and the BCG recruiting lead for the Kellogg School of Management at Northwestern University, and he served on the boards of Quorum Health, Lincoln Park Zoo, the Workplace Wellness Alliance of the
Quick Take
What does this mean for Watsonville patients and the the community?
According to Eileen Applebaum, an economist who studies private equity firms and the co-director at the Center for Economic and Policy Research, “there doesn’t seem to be any evidence that patients are worse treated” at hospitals where private equity firms like Leonard Green are major investors in hospital companies, as is now the case in Watsonville.
”But what we do see is that [if the firm] thinks an operation is not paying its way, they will close it at that particular hospital,” she said, explaining that certain patient services might be reduced or shut down. “They will say: Well, there’s another hospital, it’s only another 50 miles [away]. [You] want to deliver your baby, go there.”
Çorum da 9 bin kişiye Kovid-19 aşısı yapıldı konhaber.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from konhaber.com Daily Mail and Mail on Sunday newspapers.
CHS $1.8 billion bond offering another notch in slow turnaround
Modern Healthcare Illustration / Getty Images
Community Health Systems $1.8 billion high-yield bond offering its second drive-by transaction in as many months signals a gradual rebound for the hospital chain.
Franklin, Tenn.-based CHS both launched and priced the offering in a single day, a move known as a drive-by on the junk bond market, just as it did in December. The junior priority secured notes due 2029 garnered a CC rating from Fitch Ratings.
The low rating indicates a very high credit risk, but the transaction aligns with Fitch s prediction in November that CHS is on the upswing from its purchase of Health Management Associates in 2014.