Tenet Healthcare Corp. now has two activist shareholders with sizable stakes in its business. Boston-based Camber Capital has purchased 5.7% of Tenet's shares, and the hedge fund has a CEO with an activist history.
Chinese billionaire Tianqiao Chen as recently as February used his 10% stake in Legg Mason to gain two board seats at the asset-management firm, including the vice chairmanship for himself. His designs for CHS haven't been made public but he already carries weight with his holdings.
A new financial disclosure shows Summa Health lost more than $33 million in the first half of this year, compared with a $14 million profit for the like period last year. Interim CEO Dr. Cliff Deveny previously warned that the system was on track to lose more than $60 million in operating income.
Naperville, Ill.-based Edward-Elmhurst Health is feeling the squeeze of climbing bad debt thanks to high-deductible health plans, soaring pharmaceutical costs and Medicare and Medicaid reimbursements that don't fully cover the price tag of patient care.
Weak admissions and a deteriorating payer mix will mark the rest of 2017 after they conspired to ruin the second-quarter earnings season for hospital stocks.
Patients avoiding elective surgeries and other procedures because of skyrocketing out-of-pocket costs were cited by hospital chains as a primary cause of softening hospital volumes in the second quarter.
Tenet Healthcare, the nation's third-largest investor-owned hospital chain, wants to offload facilities that don't fit its long-term strategy so it can focus on its primary markets where it is first or second in market share.
Following divestiture of three hospitals, IU Health's operating income tumbled 46% in the second quarter as revenue fell but expenses rose.
Insurers are grappling with how to manage their government and individual lines of business, with mixed results.
Tenet, the nation's third-largest investor-owned hospital chain, saw its adjusted admissions decline 1.4% compared with the year before.
The Bloomfield, Conn.-based insurer grew revenue and premiums in the second quarter of 2017, while its profit benefited from its terminated merger agreement with Anthem.
Although a bump from the same period last year, the second-quarter earnings are short of the record $1 billion earned in the first quarter.