Becker's Hospital Review

Becker's Hospital Review November 2015

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17 FINANCE FINANCE 10 Hospital Bankruptcies So Far This Year By Ayla Ellison T he following is a compilation of all the hospital and health system bankruptcies that have been reported this year by Beck- er's Hospital Review, starting with the most recent. 1. Saint Michael's Medical Center in Newark, N.J., filed for chapter 11 bankruptcy protection Aug. 10. e hospital is on track to post a $24 million operating loss this year. 2. Southern Regional Medical Center in Riverdale, Ga., filed for chapter 11 bankruptcy protection July 30. e hospital made the filing to stay open while it evaluates a proposed sale of the facility to Ontario, Calif.-based Prime Healthcare Services. 3. Doctors Hospital of Michigan in Pontiac filed for chapter 11 bankruptcy protection in July. 4. e Woodlands, Texas-based Victory Health- care filed for chapter 11 bankruptcy protection June 12. 5. Parkview Adventist Medical Center in Bruns- wick, Maine, filed for chapter 11 bankruptcy June 16 and closed its inpatient care facilities and emer- gency department. 6. In May, Owenton, Ky.-based New Horizons Medical Center, formerly Owen County Hospital, filed for chapter 11 bankruptcy protection. 7. Aer reporting a net loss of $2 million in 2014, Albuquerque, N.M.-based Atrinea Health and three affiliates filed for chapter 11 bankruptcy in May. 8. El Paso (Texas) Children's Hospital filed for chapter 11 bankruptcy in May aer the collapse of a proposed deal with University Medical Center of El Paso. 9. In February, Craig General Hospital in Vinita, Okla., filed for chapter 9 bankruptcy in the North- ern District of Oklahoma U.S. Bankruptcy Court. 10. University General Health System, based in Houston, announced in March it filed for chapter 11 bankruptcy protection. n Fitch: Capital Spending Will Rise for Nonprofit Hospitals By Erin Marshall A growing number of U.S. nonprofit hospitals expect capital spending to increase in the next five years, according to a capital expenditures report from Fitch Ratings. Here are four things to know about the report. 1. Fifty-three percent of hospitals believe capital spending will increase in the next five years, compared to 45 percent in 2012. 2. The percentage of hospitals that anticipate issuing new bonds over the next two years decreased from 39 percent in 2012 to 29 percent in 2015. 3. IT remains the highest capital spending priority, but its importance has lowered relative to other priorities. Inpatient capacity continues to be the lowest priority. The priorities are consistent with the results of Fitch's 2012 survey. 4. Fitch Ratings Director Adam Kates said, "Increased certainty regarding the implementation of the PPACA following the Supreme Court's up- holding of key provisions of the act, stable operating profitability during implementation of key PPACA provisions over the past three years and increasing patient consumerism are contributing to the increased pro- jected capital spending." n 2015 Brings 9 Hospital Closures So Far By Ayla Ellison N ine hospitals have closed so far this year, according to the North Carolina Rural Health Research Program. For the purposes of its analysis, the NCRHRP defined a hospital closure as the cessation in provision of inpatient services. 1. Cochise Regional Hospital (Douglas, Ariz.) 2. Hunt Regional Community Hospital of Commerce (Texas) 3. Kilmichael (Miss.) Hospital 4. Marlboro Park Hospital (Bennettsville, S.C.) 5. Nye Regional Medical Center (Tonopah, Nev.) 6. Parkridge West Hospital (Jasper, Tenn.) 7. Parkview Adventist Medical Center (Brunswick, Maine) 8. Parkway Regional Hospital (Fulton, Ky.) 9. Yadkin Valley Community Hospital (Yadkinville, N.C.) Although all of the hospitals listed no longer provide inpatient care, four of them still offer some services: Parkview Adventist still offers urgent care services; Hunt Regional is now an emergency medical center and outpatient clinic; Parkridge West offers 24-hour emergency, imag- ing and lab services; and Kilmichael Hospital is now a rural health clinic, according to the NCRHRP. n

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