Becker's Hospital Review

22 CFO / FINANCE Goldman Sachs goes active on Quorum Health By Ayla Ellison G oldman Sachs is now an active investor in Brentwood, Tenn.-based Quorum Health, according to the Nashville Post. Goldman, which controls a 9.3 percent stake in Quo- rum, switched its stance from passive to active in a fil- ing with the Securities and Exchange Commission. In the SEC filing, Goldman says it could attempt to en- hance shareholder value by seeking changes in Quo- rum's strategy, board makeup and other areas, accord- ing to the report. Goldman is the second investor to go active on Quo- rum this year. In March, Davidson Kempner Capital Management declared itself an active investor, accord- ing to the Nashville Business Journal. n Struggling New York hospital to cut robotic surgeries to shore up finances By Morgan Haefner M assena (N.Y.) Memorial Hospital lost $2 million in the first three months of this year and is ending robotic surger- ies to improve its financial picture, according to Fox affiliate 7 News. After June, Massena will cut robotic surgeries to save about $460,000 on its machine lease and other expenses. Patients can still receive the same types of surgeries the robot helped perform at the hospital, but without the assistance of the equipment. In other efforts to improve the hospital's financial footing, Massena Memorial is considering a merg- er with Potsdam, N.Y.-based St. Lawrence Health System. Massena Memorial CFO Patrick Facte- au told 7 News that St. Lawrence Health is two weeks away from completing a study of Massena Memorial's finances, and the hospital will have more proposals once the study is complete. n OhioHealth's net income surges to $368M in Q3 By Morgan Haefner O hioHealth, a 12-hospital nonprofit health system in Columbus, saw its financial performance improve in the third quarter of fiscal year 2019. For the three months ended March 31, OhioHealth generated net operating income of $55.7 million, up slightly from $55 million reported in the same period a year prior, according to unaudited financial documents. OhioHealth attributed the improvement to continued volume growth, increases in net revenue per unit and effective cost management strategies. While OhioHealth saw its equities affected by market declines at the end of calendar year 2018, those equities made a strong comeback in the third quarter of fiscal 2019. OhioHealth recorded nonoperating income of $312.1 million for the third quarter of fiscal 2019, compared to a nonoperating loss of $15.3 million in the same period a year prior. OhioHealth ended the quarter with net income of $367.8 million, up from $39.6 million recorded in the third quarter of fiscal 2018. In the first nine months of fiscal 2019, the health system recorded $337.1 million in net in- come, compared to $405.8 million a year before. n Kentucky hospital on brink of closure seeks new management By Ayla Ellison S outheastern Kentucky Medical Center in Pineville is behind on payroll and needs an influx of cash to overcome financial troubles and keep its doors open, according to the Middlesboro Daily News. During an emergency meeting May 9, the Pineville City Council voted unan- imously to allow Mayor Scott Madon to gather information about acquiring the licenses to operate Southeastern Kentucky Medical Center from Fort Lau- derdale, Fla.-based Americore Health. Mr. Madon said Americore's CEO has agreed to enter into negotiations about turning the hospital's licenses over to the city. However, city leaders aren't in- terested in managing the hospital over the long term. e goal would be to find an outside company to acquire the hospital's operations. Mr. Madon said city leaders have been reaching out to individuals who previously showed interest in acquiring the hospital, according to the report. Mr. Madon estimated the city would need to borrow about $1 million imme- diately if it were to take over operations of the hospital. He said the hospital is roughly $400,000 behind on payroll and the facility is bringing in about $500,000 a month. n

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