Private equity firms offer cash relief to community hospitals

Description

Abstract: Some cash-strapped community hospitals are finding relief through capital infusions by a private equity firm. Although they’ll surrender a degree of ownership control, engaging in one of these arrangements can help strengthen their cash flow and generate more sustainable profits without necessarily subverting their mission statement. This article explains how a private equity firm can earn profits on a financially distressed community hospital, and how profit-driven ownership can be good for the hospital while preserving its charitable mission.