Group Health, Inc
Morgan Stanley analyzed data from over 6,000 hospitals and found that 450 of these facilities were at risk of potential closure.
600 hospitals were considered weak.
A range of factors have squeezed hospital profit margins:
- New competition from alternative sites of care such as UnitedHealth and CVS-Aetna
- “Merger Indigestion” after a wave of deal activity in the hospital sector following the passage of the Affordable Care Act.
Higher healthcare costs are also putting pressure on hospital systems from
- Insurance Companies
- A rise in the uninsured population.
Of the hospitals in the “at risk” pool, the highest concentration were found in the states of Texas, Oklahoma, Louisiana, Kansas, Tennessee, and Pennsylvania.