Buoyed by Federal Covid Aid, Big Hospital Chains Buy Up Competitors

[brooklynite]

Source: New York Times

Billions of dollars in Covid aid cushioned financial losses caused by the pandemic at some of the nation’s largest hospital chains. But those bailouts also helped sustain the big chains’ spending sprees as they expanded even more by scooping up weakened competitors and doctors’ practices.

More consolidation by several major hospital systems enhanced their market prowess in many regions of the United States, even as rural hospitals and underserved communities were overwhelmed with Covid patients and struggled to stay afloat.

The buying spree is likely to prompt further debate and scrutiny of the Provider Relief Fund, a package of $178 billion in congressional aid that drew sharp criticism early on for allocating so much to the wealthiest hospital systems, and that had no limits on mergers and acquisitions.

The Biden administration is now weighing which hospitals and health providers will get the remaining $25 billion.

Read more: https://www.nytimes.com/2021/05/21/health/covid-bailout-hospital-merger.html?smid=tw-share

[not fooled]

1. Ugh

This country, I dunno...

[StClone]

2. Why didn't they bar this use of the money as a condition in receipt of such relief?

[not fooled]

3. Makes sense to me

but it looks as though these funds were allocated under red don, whose party wants to promote consolidation and increased market share for powerful players.

[riversedge]

4. damn.

[melm00se]

5. An observation

The entities listed in the article are non-profits.

NYU Langone Health = non-profit
Providence Health & Services = non-profit
Virginia Mason = non-profit
CommonSpirit Health = non-profit
Robert Wood Johnson Health Network = non-profit
Trinitas Regional Medical Center = non-profit
Hackensack Meridian Health = non-profit
Englewood Health = non-profit

So what is the motive here? It is not making a pile of money as these folks are all non-profit entities or am I missing something here?

[Footay]

6. For and non profit

The only difference between non- and for- profit is taxes. They both make a lot of money.

[melm00se]

7. my point is

that the profit motive isn't in play as there are no shareholders vying for the big return/dividends/profits.

[GB_RN]

8. Not Necessarily

Non-profits tend to treat their staff better. There are also Not-for-profits which is essentially a for-profit outfit that just takes the profit and plows it back into bonuses for the bosses and buying up other hospitals (which they then shut down or marginalize). I’ve worked for both, and won’t work for a not-for-profit again.

I’ll stick with non-profits, and try to stay with medical teaching centers.