Naughty or Nice?
This year, Santa brought a lump of coal to Tenet’s Abrazo Maryvale hospital campus.
Rumored to be accompanied by the Grinch for extra muscle, he padlocked the 232-bed Phoenix area facility.
All kidding aside, the hospital fell victim to, in the words of its spokesman, “dwindling patient volumes.”
As a reader of my blog and of my book, The Impending Death of Hospitals (download here or purchase in hard copy), you know it’s more than that: it fell victim to a dwindling business model.
Tenet clearly understands it. They recently said goodbye to their former CEO, who probably had a better holiday than most with his $22.9 million severance package. But despite their foray into ASCs via their acquisition of United Surgical Partners International, their major line of business, hospitals, is an anchor around their neck.
Having lost $367 million in the 3rd quarter of 2017, compared with a $9 million loss for the 3rd quarter of 2016, the company reports that it’s looking for “strategic options.” That’s quite a euphemism.
Tenet’s slow demise isn’t unique. A significant part of the hospital industry is broken.
But you’re not Tenet.
For entrepreneurial physicians, Tenet’s troubles are your opportunity. Physician owned ASCs, non-Medicare hospitals, medical malls, and more.
The time has never been better for you. Payouts are pushing procedures out of hospitals. Why not be there to profit from them?
