The Philadelphia-based organizations have an unique 90-day window to find out whether or not the acquisition will enhance look after most cancers sufferers within the area and be a very good match for his or her strategic objectives. The due diligence interval may even embody analysis of the sale of Temple’s curiosity in Well being Companions Plans.
The 100-bed Fox Chase Most cancers heart would pair properly with Jefferson’s Sidney Kimmel Most cancers Middle, Dr. Stephen Klasko, president of Thomas Jefferson College and CEO of Jefferson Well being, mentioned in ready remarks.
“This negotiation interval will enable us to higher perceive how partnering might enhance lives for sufferers all through Philadelphia and much past,” he mentioned.
Temple mentioned the transaction would assist it additional its mission of offering scientific care to its North Philadelphia group whereas sustaining its analysis and academic focus. If the organizations approve the deal and it clears federal and state regulators’ favor, Jefferson and Temple would enter right into a long-term oncology-related educational affiliation settlement that may give Temple residents, fellows and college students entry to extra educational and analysis assets.
Constructing out oncology and different worthwhile enterprise traces are sometimes the main target of well being techniques in search of to determine regional hubs. Combining operations can increase affected person entry, which can assist suppliers unfold prices over a wider affected person base. Well being techniques are additionally in search of extra management over the whole continuum as areas like residence and outpatient care develop.
However economists and coverage consultants warn that consolidation usually supplies extra hurt than good. In lots of instances, mergers and acquisitions put upward strain on costs and stunt competitors, they declare.
Temple reported working revenue of $17.2 million in 2018 on income of $1.85 billion, up from $469,000 working revenue in 2017 on $1.75 billion of income.
Temple’s Fox Chase Most cancers Middle reported extra of revenues over bills of $38.6 million in 2018, down from $41.1 million the 12 months prior.
Jefferson, which has 14 hospitals and greater than 40 outpatient and pressing care facilities, reported $12.1 million in working revenue in 2018 on income of $four.73 billion, down from $48.eight million working revenue on $three.95 billion of income in 2017.
Salaries and wages elevated practically 20% from 12 months to 12 months, which accounts for practically half of Jefferson’s complete bills. Provide prices elevated by nearly 19% whereas bought providers jumped by greater than 40%.
Jefferson is amid one other take care of Einstein Healthcare Community that may create an 18-hospital system with practically $6 billion in income. Their footprint would come with greater than 50 outpatient and urgent-care facilities, rehabilitation and post-acute amenities, practically 39,000 workers, and greater than 2,000 residents and fellows, probably the most within the Philadelphia area.
Mergers and acquisitions can be a continued focus of well being techniques seeking to develop their networks in 2019, in keeping with a brand new survey.