Hospitals Ended 2024 On A Healthy Note With Improved Operating Margins
“While it’s encouraging to see continued stability in hospitals’ financial well-being over the past 12 months, historically slim margins indicate hospitals are not yet in a fully sustainable position,” an advisory firm executive says. Also in the news: a receivership order for Crozer Health, and more.
Fierce Healthcare:
Hospitals' Strong December Caps A Year Of Improving Operating Margins
The past year was a step in the right direction for the hospital industry as outpatient revenue and below-inflation expense increases fueled a 9% year-over-year increase in 12-month operating margins. The new numbers from advisory firm Kaufman Hall run through December and reflect operating data from 1,300 hospitals nationwide as collected by Syntellis Performance Solutions. (Muoio, 2/6)
More health industry updates —
CBS News:
Federal Judge Signs Agreement To Place Crozer Health In Receivership For 30 Days To Avoid Hospital Closures
A federal judge in Texas signed off on an agreement on Thursday that places the Crozer Health system in receivership for 30 days. The agreement will remove its parent company, Prospect Medical Holdings, and place an independent monitor to manage the health system and keep all services going. (Holden, 2/6)
Becker's Hospital Review:
Wisconsin Couple Sues Walgreens, Optum Rx Over Son's Death
A Wisconsin couple has filed a lawsuit against pharmacy benefit manager Optum Rx and Walgreens, alleging their son's death was linked to a sudden price increase in his asthma medication. The lawsuit, filed in U.S. District Court for the Eastern District of Wisconsin on Jan. 21, alleges that Cole Schmidtknecht, 22, died after being unable to afford a $500 spike in cost of his asthma medication, according to court documents obtained by Becker's. (Murphy, 2/6)
Modern Healthcare:
UnitedHealth Group, Amedisys Drop Motion To Dismiss DOJ Lawsuit
UnitedHealth Group and Amedisys dropped their request to dismiss a government antitrust lawsuit over the insurer's proposed $3.3 billion acquisition of the home health provider. In a filing Wednesday to the U.S. District Court for the District of Maryland, UnitedHealth Group and Amedisys said the Justice Department disclosed which counties it alleges would experience reduced competition under the deal, making the motion to dismiss the lawsuit at a preliminary stage moot. (Eastabrook, 2/6)
Bloomberg:
Bausch + Lomb Stock Drops After Disclosing It Won’t Go Private Now
Bausch Health Companies Inc.’s years-long process of trying to separate its Bausch + Lomb Corp. eye-care business hit a roadblock Thursday when a potential sale to private equity fell through, raising questions about the parent company’s future. Bausch Health, which owns 88% of Bausch + Lomb, has been trying to complete a separation since as early as 2020, first entertaining a spinoff and then a sale. Disagreements between shareholders and lenders, as well as Bausch Health’s debt, which stands at more than $20 billion, have complicated the efforts. (Swetlitz, 2/6)
Modern Healthcare:
Kaiser Permanente, Tufts Launch Food-Is-Medicine Network
Kaiser Permanente and Tufts University have launched a joint initiative aimed at improving nutritional and dietary health, the organizations said Thursday. The Food is Medicine National Network of Excellence comprises Tufts University's Food is Medicine Institute in Medford, Massachusetts, and Oakland, California-headquartered Kaiser, along with network members such as Blue Cross and Blue Shield of North Carolina, CVS Health, Devoted Health, Elevance Health, Geisinger Health and Highmark Health. (DeSilva, 2/6)
