With all due respects Moving_on, there will be a great deal of M&A activity in the hospital/health services industry up to 2014. The Obama Health Care Plan solidified this certainty. Gone are thedays where Americans will be going to hospitals/hospital setting to get their health care. The hospital census' today already illustrate this point. Only "catastrophic" health events will justify such a hospital visit. Many employer-based health plans are moving into the high-deductible health polans (HDHP) category, wherein even preventive care features are being scrutinized due to risk assessments by insurers. Meanwhile, these HDHP policies will continue to raise deductibles, so in effect deterring all from visiting a hospital until as a last resort.
My point is the health-delivery system in the U.S. that is centered on hospital-based care is a thing of the past. As such, there will be a M&A wave that will have to occur as the market will do what it naturally does.
What are you talking about? This is a good thing for those in THC! The inevitable is an M&A. The only three remaining questions are how? Who will be the acquiror and the acquiree? And how much will shareholder value be? In other words, PREMIUM!
It's a foregone conclusion with Obama care. Inventory for hospitals and hospital-based services will far exceed actual demand in the very near future. Consolidation is a certainty! Health delivery is going to look totally different, whereby employer-based health plans will be extinct and universal health care will be the norm. Sad, but true.
Who would want to get in bed with these guys? They have made TMC a toxic piranha. Do you serious think that another company wants to go through this kind of poop to acquire TMC? Mgt was offered a 50% premium over the $4 stockprice. The only thing holding the stock price up now is the faint hope that the board will get changed in the next election. Watch the price as CYH slips out of the picture. Directors and mgt are not going to give up their high paying positions easily as that is all many have left-they will be surely gone if acquired-because much of the company stock they own has tanked and their fortunes along with it.
HCA? Do they want more debt? Does their shareholders want more debt? LPNT? Can't handle THC UHS? - Just acquired PSI HMA? - Their stock is still low and probably cannot raise the cash.
That takes care of the big boys. Private Equity? No Synergies. Would have to fire all the upper management and start over. Only hope is that Obama gets re-elected so healthcare reform does not go away, thus not as much bad debt in 2013/2014.
THC needs to get on their knees and beg CHS to buy them.