HealthLeaders Media Finance - September 10, 2007 | Readers Respond View as a Webpage | Subscribe for Free
Readers Respond
Philip Betbeze, Senior Editor-Finance

As I write this, it's Labor Day week, so I'm gratified that you, the readers, were willing to do my labor for me this week. By way of explanation, I asked for your input, and you've responded. Thanks to all of you for your recent comments--whether they be positive or negative--regarding the subjects I've tackled in this still-new healthcare finance e-newsletter. I hope those of you who have written will continue to write. I also hope that those who haven't written will do so when something strikes a nerve. [Read More]
  Sept. 10, 2007

Editor's Picks
HCA takes steady approach to reducing debt since sale
You think? After all, $33 billion, the amount the company took out to fund its leveraged buyout, wasn't chump change. The for-profit hospital chain still carries $28 billion in debt from that transaction. But timing is everything. If HCA had waited six months, the deal would've likely been in jeopardy due to the broad market credit crunch that showed up this summer. In a previous LBO in the late 1980s, the chain focused on selling off parts of itself to reduce debt, but this time, it is focusing on operational efficiencies. [Read More]
Cost estimate balloons for Washington, DC
Washington, DC, city officials must have caught the same cost escalation disease their federal counterparts suffer from. City officials have been pressing to sell Greater Southeast Community Hospital for months to Specialty Hospitals of America, but the deal is in jeopardy thanks to new estimates that peg costs to the city of the sale at $87 million, more than $60 million more than previous estimates. Why does DC owe money when it sells something? Because it previously sold the hospital, which is on the verge of financial collapse, to Envision Hospital Corp., and the prospective owner wants the hospital's debt paid off as well as other concessions in order to complete the deal. [Read More]
CMS releases Stark II, Phase III
The Centers for Medicare and Medicaid Services has issued the long-awaited Stark II Phase III final rules. Some of the biggest changes involve indirect compensation arrangements, physician recruitment and personal service arrangements, and may raise more questions than answers. [Read More]
Finance Forum
Time For a Hill-Burton Approach to Health IT
Bruce McPherson, president and CEO of the Alliance for Advancing Nonprofit Health Care, argues that a Hill-Burton model for financing healthcare IT will provide a prodigious return in efficiency and quality for a very modest outlay. [Read More]
Finance Headlines
Oakland children's hospital to be razed, replaced
San Francisco Chronicle - September 10, 2007
Chicago Children's Hospital to get $100 million, new name
Chicago Tribune - September 10, 2007
$15 million gives struggling Atlanta hospital breathing room
Atlanta Journal-Constitution - September 10, 2007
L.A. doctors having tough time with high rents, low space
Los Angeles Times - September 10, 2007
Upcoming Events
HealthLeaders Media News - September 10, 2007
From HealthLeaders Magazine
What All Great Hospitals Do
HealthLeaders August 2007 Think you're headed for the top floor? Are you sure? [Read More]
Money Talk

A look at one hospital's struggles to improve

Mountain States Health Alliance, Johnson City, TN

Rating: Baa1
Outlook: Stable
Affected Debt: $667 million
Agency: Moody's Investors Service
Remarks: Rating upgrade from Baa2 attributed to continued generation of strong cash flow with a material increase in liquidity over the past decade.
[Read More]
Audio Feature

A Meandering Road to Healthcare: Cheryl J. Harelstad, vice president of supply chain management and technology with Allina Hospitals & Clinics in Minneapolis, believes her experience in a variety of other industries helped prepare her for the sometimes arcane world of the healthcare supply chain.
No Experience Required: Jack Fleischer, a 29-year veteran of the cutthroat world of retail, is now responsible for procurement for New York Presbyterian Hospital. Fleischer, who came to New York Presbyterian in 2004, is one of many senior-level executives recently hired in healthcare with no history inside the business.
Sponsor HealthLeaders Media Finance

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