Nearly 20 percent of U.S. hospitals are at risk of potential closure or are in weak shape, according to a recent report from Morgan Stanley, reported by Business Insider.
Hospital margins have narrowed in recent years, in part thanks to increasing consolidation across the healthcare space and rising competition. Of more than 6,000 hospitals, 450 were found to be close to a potential closure, while 600 were considered weak, the report found.
Deals like the $69 billion merger between CVS Health and Aetna, as well as UnitedHealth Group’s growing clout in the industry, are putting profit pressures on traditional hospitals. Looking ahead, new entries like Amazon likely may not grab headlines, with hospital closures dominaing the narrative over the next 12 to 18 months, the report predicted.
Higher healthcare costs are also impacting hospitals, as a result of a rise in the uninsured patients coupled with more demands from policymakers and insurance companies.
The highest “at-risk” pool included hospitals in Texas, Oklahoma, Louisiana, Kansas, Tennessee and Pennsylvania.
See the full report below:
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."