► In This Issue:

• Vertical Integration May Be the Best Option for Some Troubled Health Care Providers
• Committee to Present on Labor Issues in Health Care Insolvencies
• Have You Visited the new abi.org Yet?

Vertical Integration May Be the Best Option for Some Troubled Health Care Providers

Scott Davis Grant Thornton LLP Charlotte

Johnny Lee Grant Thornton LLP Atlanta

There has been a significant wave of health care provider consolidation driven by the desire to achieve scale in response to declining patient volumes and reimbursement, increasing costs, health care reform and the need for capital to implement improvements in the delivery of care, development/expansion of their physician networks and to make needed upgrades in IT, especially electronic medical records. The steady growth in hospital M&A activity since 2009 with nearly 100 transactions completed during 2013 is expected to continue. Experts agree that hospitals that merge “gain valuable leverage in negotiating for insurance contracts, product pricing and talent recruiting as well as assuming more control over emerging accountable care organizations.”

Troubled health care providers have been taking advantage of this trend of horizontal consolidation by affiliating with other stronger providers (see for example the successful bankruptcy sales of Casa Grande Regional Medical Center, Forum Health, Saint Francis Hospital, etc.) and this wave of consolidation has led many boards to the conclusion that their best chance to save their mission is by affiliating with a stronger provider.

At the same time there is another wave of consolidation led by health plans that are pursuing vertical integration both to control their costs and manage population health. Health plans are also reacting to the increasing strength of physician networks. In fact, many health plans are actively acquiring physician practices. This trend may lead to a natural extension into the integrated health system as the next wave of integration.
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Committee to Present on Labor Issues in Health Care Insolvencies

The Health Care Committee will be teaming up with the Labor & Employment Committee at this year’s Annual Spring Meeting to discuss labor issues in health care insolvencies. Speakers for this panel include Scott B. Davis of Grant Thornton LLP in Charlotte, N.C.; David M. Fusco of Schwarzwald McNair & Fusco LLP in Cleveland, OH; Sharon L. Levine of Lowenstein Sandler LLP in Roseland, N.J.; and Nancy A. Peterman of Greenberg Traurig, LLP in Chicago.

Join us on April 16 at the Renaissance Washington D.C.!

In the above video, see Judge Rhodes describe his Annual Spring Meeting discussion of the Detroit case—another feature at this year’s event.

Have You Visited the New abi.org Yet?

In early 2015, ABI introduced a new flagship website, abi.org, to continue to deliver better services and online resources for members to meet their professional needs. The new website provides a cleaner, more user-friendly interface for members to find the latest information on bankruptcy news and developments, register for ABI events and access other member resources. The membership directory is all new as well, complete with your photo and a enhanced listings of your experience and ABI activity. To update your member profile, click here (login required).

Should you have any questions or difficulty using the site, please go to support.abi.org to seek assistance.