Thursday, October 07, 2010

ObamaCare forces three hospitals to be put up for sale

Mark Hemingway links to this story about three Catholic hospitals in Pennsylvania are being put up for sale and officials are citing ObamaCare as one of the major causes for their decision to sell the hospitals.
Mercy Hospital in Scranton is up for sale.

Those who run the place and all other Mercy facilities in our area said Wednesday they are already in talks with organizations interested in buying.

Mercy Health Partners hopes to have a buyer by the end of the year.

Officials said there are numerous reasons for the sale. One big one is the heath care reform bill signed into law this year.

The potential sale includes Mercy Hospital in Scranton, Mercy Tyler Hospital in Tunkhannock and Mercy Special Care Hospital in Nanticoke.

For almost a century there has been a Catholic hospital in Scranton. Now it looks like that will be coming to an end.
The churches seem to be doing well financially but they don't think that that situation will continue as ObamaCare goes more into effect.
They said Mercy isn't struggling but, they added, now is the time to make a sale.

"We are in position of strength and it's always better to make a move for the future from that position," Sister Marie Parke added.

"Actually we're doing well. We're ahead of budget for the year. It's more that when we look out over the landscape of health care over the next five years and the needs of these facilities, the needs of this community, we understand a different level of investment will be needed than what we can do on our own," Cook said.

They said much of that required investment is the result of the health care reform bill passed in Washington.

The CEO said it means the need for more spending and less federal reimbursements.

"Health care reform is absolutely playing a role. Was it the precipitating factor in this decision? No, but was it a factor in our planning over the next five years? Absolutely," Cook added.
Another unintended consequence for ObamaCare.

After a while, how many purchasers will there be out there for other hospitals that decide that this is the time to get out of the business?