Bloomberg and Becker’s Hospital CFO Report note trouble at Lutheran Health Network-owner Community Health System (CHS). They cite quarterly financial losses that are likely to be seen as failing according to third quarter results. One telling quote (from https://www.beckershospitalreview.com/…/shareholders-push-f…): “John Morrow of Franklin Trust Ratings, said that investors are ‘losing faith’ and that the companies are ‘probably past their day.’” Can CHS CEO Wayne Smith keep his job?
And from Morgan Stanley (as cited in https://www.beckershospitalreview.com/…/morgan-stanley-aca-…): “We see near-term headwinds for hospitals through either low volume or increased bad debt.”
Also from Becker’s in support of difficult hospital environments is a July article, “7 hospital closures so far in 2017” (https://www.beckershospitalreview.com/…/7-hospital-closures…). Becker’s also notes these closures since July:
– In October, a California hospital filed for bankruptcy after missing payroll,
– A Tennessee critical-access hospital closed for lack of funds
– Tenet Healthcare will close a 232-bed hospital in Phoenix by year end.
– Pacific Alliance Medical Center in Los Angeles will close Dec. 11 after 150 years of service.
It is not an easy time for hospitals across the U.S.