HealthLeaders Media Finance - August 13, 2007 | Subprime Slime's Halo Effect View as a Webpage | Subscribe for Free
Subprime Slime's Halo Effect
Philip Betbeze, Senior Editor-Finance

Since the markets got collectively nervous about the rising risk of defaults in the credit markets about three weeks ago, every pundit in the land has been wondering how far the contagion will spread. It's still too soon to know, but that doesn't keep everyone from speculating--and repricing risk in the meantime. Thanks largely to the fact that banks and mortgage brokers granted loans to just about anyone who could put an "X" in the signature blank (Documentation? We don't need no stinking documentation!), other borrowers--even those with stellar credit--have been painted with a broad brush.
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  August 13, 2007

Editor's Picks
FTC ruling on hospitals could raise mergers bar
Despite the fact that Evanston Northwestern Hospital won't have to divest itself of Highland Park Hospital, the Federal Trade Commission says the system nevertheless acted improperly when merging with its neighbor in an affluent Chicago area. The FTC has seemingly cut out the heart of the reasons most hospitals would combine by requiring that Evanston Northwestern set up separate negotiations for insurance contracts for Highland Park, a key reason for most mergers happen, after all. [Read More]
Michigan can't pay hospitals
In an embarrassing turn of events for economically depressed Michigan, the state government has promised to pay by Sept. 26 money that was due hospitals in April and July, an unprecedented delay. The delay has forced some hospitals to delay scheduled construction projects and in some cases, pay graduate medical education students from cash reserves. Though most CFOs say the delays won't cause major problems, such practices could hurt bond ratings or borrowing down the road. [Read More]
Bad debt trips Tenet
Bad debt is beginning to sound like a broken record with hospital companies, including Dallas-based Tenet Healthcare Corp. Earnings misses are being blamed on bad debt again with Tenet's latest earnings trouble (it lost $30 million in the second quarter). But other nasty problems are rearing their head with the beleaguered hospital chain, which lost 5 cents a share more than analysts expected. With the increased losses, many experts are now questioning whether the chain can afford to continue to fund an aggressive capital expenditure program that it outlined only a couple of months ago. [Read More]
Finance Forum
The Next New Thing: Revenue Circle Management
With healthcare's business landscape changing by the day, contributor Preston Gee says hospital leaders need to take an innovative approach if they want to maintain market share. [Read More]
Finance Headlines
Retail sweetens hospital profits
Detroit Free Press - August 13, 2007
Aetna, NYU OK hospital contract
Bloomberg News/Hartford Courant - August 13, 2007
Bonuses spur 3 Charlotte-area hospitals to improve
Charlotte Observer - August 13, 2007
New York Medicaid administrators to return $7 million
New York Times - August 13, 2007
Impasse leaves Atlanta hospital in crisis
Atlanta Journal-Constitution - August 13, 2007
Upcoming Events
HealthLeaders Media News - August 13, 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

Fauquier Hospital, Warrenton, VA

Rating: BBB+
Outlook: Negative
Affected Debt: $60.3 million
Agency: Standard & Poor's
Remarks: Outlook revised to negative due partly to softness in operating performance through the first six months of 2007, as well as expectations of large planned capital expenditures over the next one to two years.
[Read More]
Audio Feature

Combining Compensation With Physician Alignment: Jim Woodward, current CEO of Meriter Health Services in Madison, WI, talks about his recent stint as CEO of Winchester Medical Center in Virginia, when Woodward and his leadership team developed an innovative way to combine compensation for call with an ingenious physician alignment strategy.
Sponsor HealthLeaders Media Finance

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