Two of the largest hospital operators in the Midwest – Advocate Aurora Health and Beaumont Health – are “exploring a potential partnership” that could lead to a merger, the companies disclosed Wednesday. “Following approval last week by the boards of directors, both organizations signed a non-binding letter of intent that paves the way to deeper discussions to create a leading health care system that would span across Michigan, Wisconsin and Illinois,” Beaumont and Advocate Aurora Health said in a statement. Advocate was formed via the merger of Illinois-based Advocate Health Care and Wisconsin’s Aurora Health Care and executives of the combined company have said they plan to grow in the future to further expand their footprint. One reason hospitals say they need to grow is to find scale to negotiate with health insurance companies that pay them and are becoming even larger. Though hospitals were big winners and are reaping billions of dollars from federal legislation like the he Coronavirus Aid, Relief, and Economic Security (CARES) Act, healthcare providers could face some loss in revenue in coming months as unemployment rises and more Americans lose health insurance coverage and lack the ability to pay their medical bills.
Read the full article: Big Midwest Health Systems Advocate Aurora and Beaumont Explore Merger //
Source: https://www.forbes.com/sites/brucejapsen/2020/06/17/big-midwest-health-systems-advocate-aurora-and-beaumont-explore-merger/#17e5746154eb