Hospitals' salad days are over, at least if you believe the breathless headlines. Gone are the days when business models could be built simply by chasing Medicare's hot reimbursement du jour . Unfortunately, more than business models were built on such crabbed thinking. Where Medicare led, capital structures, facilities, strategic thinking, indeed the very definition of 'success' were sure to follow. And follow they did. Massive was the party. Crushing are the debt loads and mediocre the results. Naturally a pounding hangover ensues, though the remedy - perhaps a 'rescuing' full-asset merger - is neither quick nor painless. (Example: Elmhurst Memorial Healthcare's dalliance with Northwestern Memorial HealthCare . “I think having that new facility is going to be a real challenge for (Elmhurst) financially,” says my friend Brian Sanderson, a partner at Oak Brook-based accounting firm Crowe Horwath LLP) "We've nothing left to c...
“The future is here. It's just not widely distributed yet.” (William Gibson)