Tenet deal a bandage, not cure, for bed-count woes

Article Abstract:

Tenet Healthcare Corp (Santa Barbara, CA) will pay $345 million for 8 Allegheny hospitals, which means that the surplus of hospital beds in the Philadelphia, PA area will continue. The for-profit hospital operator brought in $9.9 bil in revenues for 1997, and can afford aggressive strategies to gain market share. Widener University professor Mark Rosko speculates that Tenet may enter into managed-care contracts with Aetna U.S. Healthcare and Independence Blue Cross, underpricing competitors. Although Southeastern Pennsylvania hospitals have removed 22% of hospitals from the market, but this has not been enough to reduce intense competition for patients.

Comment:

Tenet Healthcare Corp's $345 mil bid for 8 Allegheny hospitals means the Philadelphia, PA area hospital bed glut will continue

Facilities & equipment, Hospitals, Abstract, Tenet Healthcare Corp., THC, Allegheny Health Services Inc.

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Fight puts spotlight on policyholder rights

Article Abstract:

Mercer Mutual Insurance Co. of Pennington, NJ, is in a dispute with Franklin Mutual Insurance Co. of Branchville, NJ, one of Mercer's policyholders, over the former's decision to convert from a mutual to a stock company. Franklin does not agree with Mercer's conversion proposal of giving its policyholders the right to buy shares in the reorganized company for $10 a share. Franklin contends that the offer is not a sufficient compensation for the policyholders' ownership interests. Franklin has offered to purchase Mercer from its policyholders for $23.3 million, which includes a payment of an average of $550 to each policyholder.

Comment:

Is disputing Mercer Mutual Insurance's conversion proposal contending that it is an insufficient compensation for policyholders

New Jersey, Property & Liability Insurance, Direct Property and Casualty Insurance Carriers, Property and casualty insurance, Mercer Mutual Insurance Co., Franklin Mutual Insurance Co.

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Blue Cross' for-profit expansion fuels critics' fire

Article Abstract:

Independence Blue Cross of Philadelphia, PA, has made public that it is expanding its operations across the US. The company is aiming to snare a major portion of the health insurance market share, while spinning off for-profit divisions and launching into new territory. Industry experts believe that Blue Cross is using the money it generated as a nonprofit company to activate the expansion. Competitors of the health insurance firm believe that the money permits Blue Cross to offer its services at lower premium rates.

Comment:

Makes public that it is expanding its operations across the US

Insurance, Insurance Carriers and Related Activities, Independence Blue Cross

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