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Top Healthcare Finance Stories of 2019

December 4, 2019 BY Alanna Moriarty

Top Healthcare Finance Stories of 2019

Healthcare is a high-value industry, with individual spending exceeding $10,600 per person annually. With such large sums of money being invested in the healthcare market, it is vital to keep abreast of the most recent news—including funding, merger and acquisition, and other financial announcements.

Definitive Healthcare tracked nearly 690 financial and funding-related announcements from U.S. hospitals and health systems throughout 2019. We also publicized more than 165 of the most relevant healthcare news items in our weekly newsletter and on our website.

Healthcare finance news from Definitive Healthcare

We’ve gathered the top 5 healthcare finance stories this year, according to our readers. These stories encompass everything from donations and lawsuits to mergers and expansions. See the full list below:

1. Massachusetts General Hospital received $200 million

On April 20, 2019, it was reported that MGH (MA) received a gift of $200 million from Phillip Terrence Ragon and Susan Ragon. These funds will benefit the vaccine research center at the Ragon Institute of MGH, MIT, and Harvard. Some of the illnesses being researched at the Ragon Institute include HIV/AIDS, tuberculosis, and influenza. The Ragon Institute was established in 2009 with an initial donation of $100 million, with the Ragons donating more than $400 million total to MGH to date.

Massachusetts General Hospital
Definitive ID: 1973
Net Patient Revenue: $2,903,757,623
Staffed Beds: 987

2. Grand View Health plans $210 million expansion

On October 29, 2019, it was reported that Grand View Hospital (PA) would undergo a 5-year, state-of-the-art improvement plan to improve regional healthcare services. The project includes a 170,000-sq-ft expansion that will house an emergency department, intensive care unit, private inpatient rooms, cardiac catheterization lab, operating rooms, and full-service radiology suite. There are also renovations planned for areas of the existing hospital.

Grand View Hospital
Definitive ID: 3466
Net Patient Revenue: $194,067,901
Staffed Beds: 162

3. Grays Harbor Community Hospital refuses to pay $1 million ransomware demand

On June 15, 2019, it was reported that Grays Harbor Community Hospital and Harbor Medical Group were targets of ransomware, which encrypted patient electronic health record databases. The hackers demanded a ransom of more than $1 million in the cryptocurrency Bitcoin. Grays Harbor contacted the FBI to launch an investigation and was advised against paying the ransom. The hospital insists no patient information was compromised in the cyberattack.

Grays Harbor Community Hospital – Main Campus
Definitive ID: 4361
Net Patient Revenue: $91,077,617
Staffed Beds: 49

4. AdventHealth buys two Polk County Centers for $100 million

On November 13, 2019, it was reported that AdventHealth (FL) officially acquired two Florida medical centers for a combined $100 million: Heart of Florida Regional Medical Center (renamed AdventHealth Heart of Florida) and Lake Wales Medical Center (renamed AdventHealth Lake Wales). AdventHealth’s intentions to purchase the facilities were made public back in May 2019. Both medical centers were purchased from Community Health Systems (TN).

AdventHealth
Definitive ID: 4694
Net Patient Revenue: $8,076,973,928
Staffed Beds: 7,989

AdventHealth Heart of Florida
Definitive ID: 910
Net Patient Revenue: $137,893,889         
Staffed Beds: 193

AdventHealth Lake Wales
Definitive ID: 908
Net Patient Revenue: $55,624,263
Staffed Beds: 93

5. Alecto Healthcare sued over unpaid bills in WV and OH

On September 24, 2019, it was reported that Alecto Healthcare Services (CA) was being sued by Patientmatters, LLC (FL) over unpaid bills from July 2019 at Ohio Valley Medical Center (WV) and East Ohio Regional Hospital (OH) – totaling nearly $666,000 plus interest. Alecto closed Ohio Valley Medical on September 4, 2019, and closed East Ohio Regional on October 7, 2019.

Alecto Healthcare Services
Definitive ID: 780811
Net Patient Revenue: $352,427,834
Staffed Beds: 702

Ohio Valley Medical Center
Definitive ID: 4455
Net Patient Revenue: $77,135,314           
Staffed Beds: N/A

East Ohio Regional Hospital
Definitive ID: 3092
Net Patient Revenue: $40,076,314
Staffed Beds: N/A

Finance news from other media outlets

Definitive Healthcare isn’t the only place to find the top healthcare news stories. Here are some of the most interesting healthcare finance stories from other websites:

U.S. continues to lead in healthcare spending

According to a Becker’s article from November 7, 2019, a report from the Organization for Economic Cooperation and Development (OECD) stated that the U.S. spent more than double what other OECD member countries did on healthcare in 2018. On average, U.S. patients spent more than $10,600 per person, where the OECD member average is $3,994.

Additionally, only about half of U.S. healthcare expenditures were covered by insurance, compared to roughly 71 percent in the average OECD country. Despite the exorbitant spending, Americans have a below-average life expectancy—only 78.6 years in the U.S. compared to 80.7 years on OECD average.

19 hospital bankruptcies by state

Between January 1 and November 1, 2019, 19 hospitals filed for bankruptcy in the U.S.

De Queen Medical Center (AR)
Date of closure: May 7, 2019
Bankruptcy: Chapter 11
Definitive ID: 284

Westlake Hospital (IL)
Date of closure: August 2019
Bankruptcy: Chapter 7
Definitive ID: 1130

Oswego Community Hospital (KS)
Date of closure: February 14, 2019
Bankruptcy: Chapter 11
Definitive ID: 1572

Horton Community Hospital (KS)
Date of closure: March 12, 2019
Bankruptcy: Chapter 11
Definitive ID: 6012

Hillsboro Community Hospital (KS)
Date of declaration March 13, 2019
Bankruptcy: Chapter 11
Definitive ID: 1582

Penobscot Valley Hospital (ME)
Date of declaration: January 29, 2019
Bankruptcy: Chapter 11
Definitive ID: 1863

Calais Regional Hospital (ME)
Date of declaration: September 17, 2019
Bankruptcy: Chapter 11
Definitive ID: 1871

I-70 Community Hospital (MO)
Date of closure: February 15, 2019
Bankruptcy: Chapter 11
Definitive ID: 5119

Washington County Hospital (NC)
Date of closure: February 14, 2019 (temporary)
Bankruptcy: Chapter 7 (involuntary)
Definitive ID: 3043

Prague Community Hospital (OK)
Date of declaration: March 21, 2019
Bankruptcy: Chapter 11
Definitive ID: 3305

Haskell Community Hospital (OK)
Date of closure: October, 2019
Bankruptcy: Chapter 11
Definitive ID: 3292

Drumright Regional Hospital (OK)
Date of declaration: March 17, 2019
Bankruptcy: Chapter 11
Definitive ID: 3278

Fairfax Community Hospital (OK)
Date of declaration: March 17, 2019
Bankruptcy: Chapter 11
Definitive ID: 3342

Lauderdale Community Hospital (TN)
Date of declaration: March 8, 2019
Bankruptcy: Chapter 11
Definitive ID: 3785

Southcross Hospital (TX)
Date of closure: October, 2019
Bankruptcy: Chapter 11
Definitive ID: 1007152

Springfield Medical Care Systems (VT)
Date of declaration: June 26, 2019
Bankruptcy: Chapter 11 bankruptcy protection
Definitive ID: 1007710

Astria Health (WA)
Date of declaration: May 6, 2019
Bankruptcy: Chapter 11 bankruptcy protection
Definitive ID: 948890

Williamson Memorial Hospital (WV)
Date of declaration: October 21, 2019
Bankruptcy: Chapter 11 bankruptcy protection
Definitive ID: 4449

The Philadelphia Academic Health System and some subsidiaries also filed for chapter 11 bankruptcy protection on June 30, 2019 but is not included in this list. In September 2019, PAHS closed the Hahnemann University Hospital and sold St. Christopher's Hospital for Children.

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