2. The pandemic hasn't stopped hospital mergers
Hospitals that have pocketed tens of millions of dollars in federal coronavirus bailouts are still pursuing big-ticket mergers and acquisitions, Axios' Bob Herman writes.
Why it matters: The pandemic has dried up big parts of hospitals' businesses, and that's why Congress established a $175 billion bailout fund to help them. At the same time, they're spending millions on lawyers and advisers to explore deals that expand their business empires.
Advocate Aurora Health and Beaumont Health are in discussions to merge into a giant hospital system spanning three Midwest states.
- Beaumont has received more than $550 million so far in coronavirus bailout funds, and Advocate Aurora has received $328 million.
Atrium Health, Duke Health and Novant Health are in a multibillion-dollar bidding war to acquire New Hanover Regional Medical Center in Wilmington, North Carolina.
- Atrium has pocketed $149 million, Novant has received more than $80 million and Duke has gotten almost $50 million in bailout funds.
ProMedica is offering to take over the operations of the University of Toledo Medical Center. ProMedica has received $158 million in coronavirus bailouts.
Lifespan and Care New England in Rhode Island have rekindled merger talks. The two systems have combined for more than $64 million in coronavirus funds.
The bottom line: The effects on competition and patients' wallets will live on after the pandemic ends.