Healthcare Data Depot
The nascent relationship between Dimensions Healthcare System and the University of Maryland Medical System is beginning to bud as they enter into a new partnership.
The academic medical center's affiliated doctors will manage and staff Dimensions' three emergency departments. It's the first tangible partnership to emerge from a collaboration between the two, kicked off last July, to solve Dimensions' seemingly intractable financial problems.
Read more at Washington Business Journal
The academic medical center's affiliated doctors will manage and staff Dimensions' three emergency departments. It's the first tangible partnership to emerge from a collaboration between the two, kicked off last July, to solve Dimensions' seemingly intractable financial problems.
Read more at Washington Business Journal
Cardinal Health Inc. has agreed to a settlement with the Drug Enforcement Agency that calls for a two-year suspension on shipping controlled medicines from its Lakeland distribution center.
The settlement also requires the facility to improve certain anti-diversion procedures, according to a written statement.
The Lakeland center will remain open during the suspension, and all other business will continue as normal.
The DEA confirmed it would not pursue any further administrative actions at other Cardinal facilities.
The DEA order against Cardinal Health alleged that four Cardinal retail pharmacy customers dispensed controlled substances that were issued for non-legitimate medical purposes and that Cardinal failed to conduct meaningful due diligence.
Read more at Tampa Bay Business Journal
The settlement also requires the facility to improve certain anti-diversion procedures, according to a written statement.
The Lakeland center will remain open during the suspension, and all other business will continue as normal.
The DEA confirmed it would not pursue any further administrative actions at other Cardinal facilities.
The DEA order against Cardinal Health alleged that four Cardinal retail pharmacy customers dispensed controlled substances that were issued for non-legitimate medical purposes and that Cardinal failed to conduct meaningful due diligence.
Read more at Tampa Bay Business Journal
National Health Investors, Inc. has exercised an option to purchase and lease a new, stabilized skilled nursing facility located in Texas for a purchase price of $13.4 million. The facility opened at the end of 2010 with 125 beds and is operated by affiliates of Legend Healthcare, LLC. The transaction is expected to close within the next thirty days and will be funded from available cash and from borrowings on NHI’s revolving credit facility.
“This acquisition of a new high quality asset continues the growth and positive diversification of NHI’s portfolio.”
Justin Hutchens, NHI’s CEO and President, noted, “This acquisition of a new high quality asset continues the growth and positive diversification of NHI’s portfolio.”
Read more at BusinessWire
“This acquisition of a new high quality asset continues the growth and positive diversification of NHI’s portfolio.”
Justin Hutchens, NHI’s CEO and President, noted, “This acquisition of a new high quality asset continues the growth and positive diversification of NHI’s portfolio.”
Read more at BusinessWire
The Board of Directors of Scott Memorial Hospital, a 25-bed critical access hospital serving Scott County, Ind., today announced that it has signed a letter of intent to lease the hospital to The Regional Health Network of Kentucky and Southern Indiana, a new joint venture formed by Norton Healthcare and LifePoint Hospitals to operate hospitals in non-urban communities in the region.
This proposed relationship would be the first transaction for the new Norton and LifePoint company. As part of the proposed lease with Scott Memorial, the new company would operate the hospital, with LifePoint being the managing partner and Norton Healthcare being the clinical partner.
Read more Market Watch
This proposed relationship would be the first transaction for the new Norton and LifePoint company. As part of the proposed lease with Scott Memorial, the new company would operate the hospital, with LifePoint being the managing partner and Norton Healthcare being the clinical partner.
Read more Market Watch
May
09
Standard & Poor's Assigns Issue-Level Rating of 'BB' to HCA, Inc.'s Senior Secured A-3 Term Loan
Standard & Poor's Ratings Services assigned its issue-level rating of 'BB' (two notches above the 'B+' corporate credit rating on the company) to Nashville-based HCA, Inc.'s $726 million senior secured A-3 term loan due 2016. S&P also assigned this debt a recovery rating of '1', indicating the expectation of very high (90% to 100%) recovery in the event of a payment default. All issue-level and recovery ratings on the company's existing debt issues remain unchanged, as does the 'B+' corporate credit rating. The rating outlook is stable.
The ratings on HCA reflect S&P's assessment of its business risk profile as "fair" and its financial risk profile as "highly leveraged," according to our criteria. The ratings also reflect our expectation mid-single-digit organic growth rate driven by blended rate increases under 3% and small increases in patient volume, and no further significant acquisition activity beyond the recent acquisition of the remaining interest in HCA-HealthONE LLC in Denver. This estimate is on a comparable basis, considering the adjustment for the change in accounting for bad debt. With the exception of HCA-HealthONE LLC, the company has not been very acquisitive.
Read more at HCA, Inc.
The ratings on HCA reflect S&P's assessment of its business risk profile as "fair" and its financial risk profile as "highly leveraged," according to our criteria. The ratings also reflect our expectation mid-single-digit organic growth rate driven by blended rate increases under 3% and small increases in patient volume, and no further significant acquisition activity beyond the recent acquisition of the remaining interest in HCA-HealthONE LLC in Denver. This estimate is on a comparable basis, considering the adjustment for the change in accounting for bad debt. With the exception of HCA-HealthONE LLC, the company has not been very acquisitive.
Read more at HCA, Inc.
Fitch Ratings has upgraded Community Health Systems' ratings, including the Issuer Default Rating (IDR) to 'B+' from 'B'. The Rating Outlook is Stable. The ratings apply to approximately $9.3 billion of debt at March 31, 2012. Fitch has upgraded Community's senior secured credit facility to 'BB+/RR1' from 'BB/RR1' and affirmed its senior unsecured notes at 'B', recovery rating revised to 'RR5' from 'RR4'.
Community's financial flexibility has improved in recent years. Debt-to-EBITDA dropped to around 5.0 times (x) at March 31, 2012 from 5.8x in 2008, the year immediately following the $6.9 billion acquisition of Triad Hospitals.
The recovery ratings (RR) reflect Fitch's expectation that the enterprise value of Community will be maximized in a restructuring scenario (going concern), rather than a liquidation. The affirmation of the unsecured notes rating at 'B' despite the upgrade of the IDR is based on a lower estimated distressed EV multiple. In previous recovery analysis for Community, Fitch assigned a 7.0x multiple. The 6.5x multiple is based on recent acquisition multiples in the healthcare provider space as well as the recent trends in the public equity valuations of the for-profit hospital providers.
Fitch estimates Community's distressed enterprise valuation in restructuring to be approximately $8.3 billion. The 'BB+/RR1' rating for the bank facility reflects Fitch's expectations for 100% recovery under a bankruptcy scenario.
The 'B/RR5' rating on the unsecured notes rating reflects Fitch's expectations for recovery in the 11%-31% range.
Read more at Community Health Systems
Community's financial flexibility has improved in recent years. Debt-to-EBITDA dropped to around 5.0 times (x) at March 31, 2012 from 5.8x in 2008, the year immediately following the $6.9 billion acquisition of Triad Hospitals.
The recovery ratings (RR) reflect Fitch's expectation that the enterprise value of Community will be maximized in a restructuring scenario (going concern), rather than a liquidation. The affirmation of the unsecured notes rating at 'B' despite the upgrade of the IDR is based on a lower estimated distressed EV multiple. In previous recovery analysis for Community, Fitch assigned a 7.0x multiple. The 6.5x multiple is based on recent acquisition multiples in the healthcare provider space as well as the recent trends in the public equity valuations of the for-profit hospital providers.
Fitch estimates Community's distressed enterprise valuation in restructuring to be approximately $8.3 billion. The 'BB+/RR1' rating for the bank facility reflects Fitch's expectations for 100% recovery under a bankruptcy scenario.
The 'B/RR5' rating on the unsecured notes rating reflects Fitch's expectations for recovery in the 11%-31% range.
Read more at Community Health Systems
Universal Health Services, Inc., has signed a definitive agreement to sell Auburn Regional Medical Center, a 213-bed acute care hospital located in Auburn, Washington. The hospital will be sold to MultiCare Health System, a regional not-for-profit integrated health system based in Tacoma, Washington. We expect the sale proceeds to be approximately $98 million, including estimated net working capital, which will result in a substantial gain on the sale. The transaction is subject to customary regulatory approvals and we expect the closing to occur by September, 2012.
Over the past several years, UHS has concentrated on mid-sized markets where we hold market leading positions and this market no longer fits our long term strategy. We are pleased with this Agreement and expect the change in ownership to strengthen the hospital's ability to serve the community.
Universal Health Services, Inc. is one of the nation's largest hospital companies, operating, through its subsidiaries, acute care hospitals, behavioral health facilities, and ambulatory centers throughout the United States, Puerto Rico and the U.S. Virgin Islands.
Certain statements in this release may constitute forward-looking statements and are subject to various risks and uncertainties as discussed in the Company's filing with the Securities and Exchange Commission. The Company is not obligated to update these forward-looking statements even if the Company's assessment of these risks and uncertainties changes.
Read more at Universal Health Services
Over the past several years, UHS has concentrated on mid-sized markets where we hold market leading positions and this market no longer fits our long term strategy. We are pleased with this Agreement and expect the change in ownership to strengthen the hospital's ability to serve the community.
Universal Health Services, Inc. is one of the nation's largest hospital companies, operating, through its subsidiaries, acute care hospitals, behavioral health facilities, and ambulatory centers throughout the United States, Puerto Rico and the U.S. Virgin Islands.
Certain statements in this release may constitute forward-looking statements and are subject to various risks and uncertainties as discussed in the Company's filing with the Securities and Exchange Commission. The Company is not obligated to update these forward-looking statements even if the Company's assessment of these risks and uncertainties changes.
Read more at Universal Health Services