Activist investors are taking more interest in buying shares of healthcare companies and trying to influence management.
Activist investors took varied approaches with the three largest hospital chains.
Tenet Healthcare Corp. shareholders will vote on a proposal to allow for action by written consent without meetings. Glenview Capital Management, which owns a 17.77% stake in Tenet, submitted the proposal.
Salt Lake City-based Intermountain Healthcare will outsource 2,300 nonclinical employees to revenue-cycle management company R1 RCM, a move that is expected to save the integrated health system $70 million over the next three years.
The most mergers ever were recorded in 2017 by financial firm Kaufman Hall, which began tracking deals in 2000. Even with that growth, more financially strong systems are attracting interest in being acquired by a larger or better-positioned system.
Loyola Medicine plans to pay about $270 million to buy west suburban MacNeal Hospital from its giant for-profit owner Tenet Healthcare, which is exiting the Chicago-area market.
Majority stakeholders in Tenet Healthcare Corp. can now convene meetings where they could potentially vote on significant changes to the company, including a sale.
Detroit Medical Center's CEO announced the hospital will lay off more employees in the coming weeks as the health system struggles to cope with challenges afflicting the healthcare industry.
Tenet Healthcare will continue to shed non core assets as it tries to reduce a $15 billion debt load. New CEO Ronald Rittenmeyer said his goal is to create a more agile organization.
Tenet completed the $170 million sale of its last two Philadelphia hospitals to American Health System, which also formed a joint venture with real estate investment firm Harrison Street Real Estate Capital to acquire a portfolio of affiliated assets.
The J.P. Morgan Healthcare Conference kicked off in San Francisco on Monday with news of more cost-cutting measures by Tenet and continued success on the ACA exchanges for Centene. Our reporters Shelby Livingston and Tara Bannow are there to offer daily observations and news.
Tenet Healthcare Corp. signed a definitive agreement to sell Chesterfield, Mo.-based Des Peres Hospital to St. Luke's Hospital. Tenet is continuing to offload hospitals in non-core markets to pay down its $15 billion debt load.