A Los Angeles-based company that owns more than a dozen hospitals in four states filed for bankruptcy late Saturday night, the second major system acquired by private equity to collapse in less than a year. In an initial filing seeking Chapter 11 protections, Prospect Medical Holdings, which owns facilities in California, Pennsylvania, Rhode Island, and Connecticut, listed debts of more than $400 million. In a press release announcing its restructuring, the company said it would continue to operate as normal.
Pauls Valley's hospital is closing down nearly four years after it reopened amid reported financial challenges. Valley Community Hospital is closing its doors this week after an announcement from its owner and CEO, Madhukar Sharma, according to the Pauls Valley Democrat. Sharma told the Democrat monthly shortfalls well into the six-figure range fueled his decision to close the facility.
Healthcare industry leaders gathering in San Francisco for an annual conference typically discuss dealmaking, bestselling drugs and how to entice their next big investor. This year another topic is foremost on their minds: Staying safe.
"This is one of the industry's marquee events, so it naturally attracts not just investors and executives, but also opportunistic criminals and organized protest groups," said Brian Stephens, senior managing director of consulting firm Teneo's risk advisory arm and former security executive at Bank of America, who is advising conference attendees. "The conference effectively becomes a citywide affair—that fluidity is great for spontaneous meetings but complicates security measures."
Brent Saunders, chief executive of Bausch & Lomb, will do business as usual at the conference. He always travels with security at the conference and says he has dealt with credible threats for years.
Now, however, Saunders will change some of his behavior. In the past, he would walk a few blocks to his hotel from the conference venue, the Westin St. Francis, at the end of each conference day. His security will likely discourage that, preferring to travel by car, no matter the distance.
"This year I don't think they'd let me walk back," he said. "You're paying for those guys to be there. Let them do their job."
The conference, held in San Francisco's Union Square, is among the premier events in healthcare each year, drawing some 20,000 industry professionals to the city, including many executives.
More than 500 companies, ranging from drugmakers such as Pfizer and wholesalers such as Cencora to dozens of biotechnology companies, are scheduled to give presentations to investors. Scores of parallel events and panels will be held at nearby locations.
The research found that the top concerns medical professionals have are liability-related and responsibility-related. But the respondents also shared a concern about how the practice of medicine and the satisfaction of interacting with patients might be reduced or eliminated.