Lawyer Aurora-Beaumont deal dead • Akorn comes out of bankruptcy • Pandemic has fueled CommonSpirit’s $ 155 million operating loss
LAWYER AURORA WILL NOT BRING THE MICHIGAN SYSTEM INTO THE BEND: Beaumont Health and Aurora Health Advocate ended long-standing merger discussions which were marked by controversy and opposition from many Beaumont staff.
Beaumont, based in Southfield, Michigan, did not give a reason for ending the talks, which had been put on hold as Beaumont tried to resolve issues with doctors and other staff. Over the past three months, doctors, nurses and donors have expressed unhappiness with Beaumont CEO John Fox, COO Carolyn Wilson and Chief Medical Officer David Wood over a certain number of management decisions they believe have resulted in low morale, inadequate staffing, lack of supplies, changes in anesthesia services and departures of the best doctors and nurses.
“While our discussions have progressed well initially, over the past two months Beaumont has had internal issues that have surfaced and they are therefore focusing on their local operations,” lawyer Aurora said in a statement. “We are disappointed, but understand their need to turn their attention inward. As such, we will move on and we continue to believe in the value of the ladder to make healthcare better and more. affordable. “
A combination of the chain of 26 hospitals and eight Beaumont hospitals would have created a $ 17 billion health care system, making it the seventh largest nonprofit in the country behind Trinity Health, based in Livonia, in the United States. Michigan. READ MORE.
AKORN COMES OUT OF CHAPTER 11 WITH A NEW PROPERTY: Specialty pharmaceutical company Akorn said on Friday it had finalized its sale to some of its term lenders. The deal to complete Akorn’s Chapter 11 cases with debtors was approved by the United States Bankruptcy Court for the District of Delaware on September 2, 2020, the Lake Forest-based company said.
The company said in the statement that the deal leaves it “well positioned to continue to fulfill its mission” and leaves Akorn’s long-term debt reduced by more than half. The company has also “guaranteed a revolving line of credit to ensure a more solid balance of leaf and operating flexibility as it prepares to enter a new phase of growth.”
Akorn now operates as a private entity under the legal name of Akorn Operating Company LLC, the statement said.
A $ 550M OPERATING LOSS OF COMMONSPIRIT TO THE PANDEMIC: The CFO of CommonSpirit Health attributed the nonprofit health system’s $ 550 million operating loss in its fiscal year 2020 largely to the COVID-19 pandemic.
The Chicago-based system generated $ 29.6 billion in operating revenue in the fiscal year ended June 30, a loss margin of 1.9%. This compares to an operating loss of $ 602 million on $ 21 billion of operating revenue in fiscal 2019, or a loss margin of 2.9%.
The 137-hospital system had been on track for a very good year until February, then went into “fiscal discipline mode” when the pandemic struck in March, Dan Morissette, CFO of CommonSpirit, told Modern Healthcare.
Health care system spending amounted to $ 30.1 billion in FY2020, an increase of 41% year-over-year. Revenue, by comparison, increased 40 percent year-over-year.
“The fourth trimester has of course been tough for everyone, with COVID-19, so I think it fits the range of expectations, all things considered,” said Ken Gacka, senior director and analytical director of care ratings. health at S&P Global Ratings. More modern health care.
THE UCHICAGO ORGANIZATION RECEIVES TEST FUNDS FOR EX-OFFENDERS AND LATIN POPULATIONS: The National Institute of Health has awarded $ 5 million to support COVID-19 testing in underserved areas in Chicago Center for HIV Elimination, the organization hosted by the University of Chicago said in a statement.
The effort is funded by NIH’s RADx Underserved Populations program, a division of the Rapid Acceleration of Diagnostics initiative that aims to better understand COVID-19 testing patterns among underserved and vulnerable populations; strengthen data on disparities in infection rates, disease progression and outcomes; and develop strategies to reduce disparities in COVID-19 testing.
“There’s no point in coming up with a new medical treatment or a new test if no one else will take it,” said project leader Dr. John Schnieder, professor of medicine and epidemiology at UChicago Medicine and director of the Chicago Center. for HIV Elimination.
RCA, GATEWAY FOUNDATION OPEN ST. CHARLES TREATMENT CENTER: Recovery Centers of America, RCA, backed by private capital, has launched its first foray outside the East Coast with a new 120-bed addiction treatment center in St. Charles.
The center, which sits on a redeveloped 125-acre girls’ school property, presents a new challenge for Illinois treatment leader The Chicago-based Gateway Foundation, a nonprofit that has seen its dominant position on the market weakened in recent years by the encroachment of competition, in particular medical and surgical hospitals.
Amid a wave of private investment focused on drug treatment in recent years, RCA is among the best funded. Founded by renowned Philadelphia real estate developer Brian O’Neill, RCA raised $ 231 million in seed capital from private equity firm Deerfield Management Company in 2015, one of the largest private equity deals in this year. An additional $ 100 million was raised the following year to fund aggressive growth through acquisitions and the development of new centers.
Before getting approval, local authorities fought tooth and nail against the opening of the center in a legal battle that lasted for years. Last year, South Florida-based developer MAXXAM clinched a decisive victory over Kane County, raising a record-breaking $ 5 million settlement and getting virtually all necessary zoning requirements approved.
—Ted Jackson contributed to this story.
SAFETY NETS NEED PARTNERS, NOT SAVIORS: While safety nets would appreciate the support of fellow institutions with greater reservations, the real solution lies in partnering these institutions with safety net providers, businesses, government and, most importantly, the community, according to an opinion piece by Karen Teitelbaum, President and CEO of Sinai Health System.
UCHICAGO MEDICINE, SOLIS MAMMOGRAPHY OPENS TWO BREAST CARE CENTERS: 3D mammography specialist Solis Mammography has partnered with the University of Medicine of Chicago to operate sites in UCicago Medicine’s Orland Park and River East ambulatory care centers. Solis also operates a site inside the Duchossois Center for Advanced Medicine at UChicago Medicine in Hyde Park. The centers are staffed by UChicago Medicine radiologists.
ICYMI: HEALTHCARE REAL ESTATE A LUMINOUS PLACE IN CASE OF PANDEMIC: Further evidence that the medical practice industry has so far demonstrated its resilience during the COVID-19 crisis, the healthcare division of Chicago-based MB Real Estate Services has formed a new company, Remedy Medical Properties, which will focus on investing in and developing health care properties. Meanwhile, Sterling Bay has partnered with Chicago-based real estate private equity firm Harrison Street as a joint venture partner in a 125,000 square foot medical research building refitted last year and leased to start-ups. – biotechnological and pharmaceutical ups. READ MORE.
LESSONS TO LEARN FROM THE UHS CYBER ATTACK: Health care information technology experts share four key points of the Universal Health Services malware attack that causes the hospital chain to take all of its U.S. computer networks offline for investigation. Number one? Set up offline procedures, Modern health care reports.
PEOPLE ON THE MOVE:
• The board of directors of the Chicago-based Graduate Medical Education Accreditation Council has approved the following roster of officers:
- Dr Karen J. Nichols is the new chairman of the board of directors of ACGME. She was previously Dean of Midwestern University / Chicago College of Osteopathic Medicine in Downers Grove.
- Claudia J. Wyatt Johnson is the new vice president. She is the co-founder of Partners In Performance, a strategic human resources consulting firm that works extensively with hospital systems, medical practice groups, and community health plans.
- Dr H. Hunt Batjer is the new treasurer. He is founding chair of the department of neurological surgery at Northwestern University Feinberg School of Medicine.
• Edward Elmhurst Health hired the following doctors:
- Dr David Aguiar, obstetrician and gynecologist, has joined Edward Medical Group and sees patients in Naperville, Oswego and Plainfield.
- Dr Mydhili Moorthie, a family physician, has joined Edward Medical Group and sees patients in Yorkville.
- Dr Sudha Yalamanchi, endocrinologist, has joined the Elmhurst Clinic and sees patients in Elmhurst and Hinsdale.