Issue link: https://beckershealthcare.uberflip.com/i/1299034
10 CFO / FINANCE Texas regulators approve sale of 2 CHS hospitals under COPA law By Alia Paavola T exas regulators have approved Frank- lin, Tenn.-based Community Health Systems' planned divestiture of two hospitals in the state, despite objection from the Federal Trade Commission. In April, CHS announced its intent to sell the 231-bed Abilene (Texas) Regional Medical Center to Abilene-based Hendrick Health System and its 171-bed San Angelo (Tex- as) Community Medical Center to Shannon Health System in San Angelo. e Texas Health and Human Services Com- mission had the final say on the proposed transactions because Texas implemented the Certificate of Public Advantage law that shields the deals from federal oversight in ex- change for state oversight. In a September letter to the Texas commis- sion, the FTC argued that if the deals moved forward, the combinations would remove competition in the markets, resulting in high- er prices and harming consumers. However, despite the FTC's objections, the Texas commission approved the deals Oct. 2, a lawyer familiar with the case told Becker's Hospital Review. "We are excited to receive final regulatory approval from the Texas Health and Hu- man Services Commission," Shane Plymell, Shannon Health System president and CEO, told the San Angelo Standard-Times. "We are grateful for the work and support of our state leaders, our boards, associates and providers, and our community leaders throughout this process. Shannon looks forward to complet- ing the acquisition process with Community in the coming weeks and working together to enhance care for the 300,000 people in our region." n Private equity-backed hospitals received $2.5B in COVID-19 aid By Ayla Ellison H ospital chains owned by three private equi- ty firms received a combined $2.5 billion in federal grants and loans to offset financial damage linked to the COVID-19 pandemic, ac- cording to Bloomberg. Brentwood, Tenn.-based LifePoint Health, owned by private equity firm Apollo Global Management, received $941 million in Medicare loans and $535 million in federal grants, which do not have to be repaid. A LifePoint spokesperson told Bloomberg that the company needed the federal relief aid to help cover higher expenses and lost revenue tied to the pandemic. Los Angeles-based Prospect Medical Holdings, owned by Leonard Green & Partners, received $234 million in loans and $141 million in federal grants, according to analysis by Bloomberg. Dallas-based Steward Health Care, financed by Cerberus Capital Management, got $427 million in loans and $248 million in grants. In May, Stew- ard transferred ownership to a group of physi- cians, according to the report. Though the hospital chains qualified for the relief aid, some lawmakers have raised concerns about private equity-backed healthcare companies re- ceiving federal COVID-19 relief aid. n Investigation into patient care stalls sale of 190-bed St. Louis hospital By Alia Paavola T he sale of St. Louis-based St. Alexius Hospital stalled in Sep- tember amid an investigation into the quality of patient care at the facility, according to The St. Louis Dispatch. The 190-bed hospital is owned by Americore Holdings, a Flori- da-based hospital management firm that filed for bankruptcy in December 2019. In July, the bankruptcy court overseeing the case approved a proposal for Americore to sell St. Alexius Hospital and its assets to SA Hospital Acquisition Group. The sale of St. Alexius was ex- pected to close no later than Aug. 21, according to the report. However, the potential buyer said it doesn't want to finalize the sale until the investigation into patient care is resolved. The Missouri Department of Health and Senior Services began its probe after receiving an anonymous complaint about the quality of care at the hospital, which treats a large portion of Medicare and Medicaid patients. The state department's health inspectors visited the facility in August. After the visit, the facility was placed in immediate patient jeopardy, which is a situation where a patient suffered serious harm or could suffer serious harm based on the hospi- tal's practices and procedures. The specific patient care issues identified by regulators were not publicly available. St. Alexius has submitted a plan of correction to fix the issues iden- tified by state regulators, but a Missouri health department spokes- person said as of Sept. 18 the investigation was still ongoing. n