Source Shorts
The SEC’s New Equation: CEO Pay Divided by Average Employee’s Pay = Good Policy
Anne Marie Helm, Managing Editor August 6, 2015
The topic of executive pay has been central to discussions of wealth disparity in America, and the healthcare industry is certainly not exempt. Amid the large number of hospitals who claim non-profit status are a great number of publicly-traded healthcare firms for whom the chickens may be coming home to roost come January 2017 (and let’s not forget about Big Pharma). At last, the SEC has passed a rule under the Dodd-Frank Act of 2010, which passed a range of financial reforms not specific to healthcare, that will require firms …
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Update: Daughters of Charity Gets $250M to Stay Afloat
Anne Marie Helm, Managing Editor July 17, 2015
Update (July 17, 2015): The Daughters of Charity hospitals, which sought purchasers due to financial hardship earlier this year, only to be impeded by the California AG, whose onerous conditions were the death knell to Prime’s proposed acquisition, have secured some help in the form of a $250 million capital injection, according to early reports. Private equity firm BlueMountain Capital Management will provide the investment. See below for our earlier posts on the Daughters situation: Update (March 10, 2015): Today Prime announced that it would not go forward with its proposed …
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Health Affairs Study Lists the 50 U.S. Hospitals with Biggest Mark-Ups
Anne Marie Helm, Managing Editor June 9, 2015
Health Affairs just published a study that used Medicare data from 2012 to identify the 50 U.S. hospitals with the highest charge-to-cost ratios. The Washington Post published an excellent breakdown of the academic piece, complete with graphics. The study showed that all but one of the 50 were for-profit hospitals, and 20 were in Florida.
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Update: Prime Backs out of Daughters Hospital Deal Due to California AG’s “Onerous” Conditions
Jaime S. King, Executive Editor and Anne Marie Helm March 10, 2015
Update (March 10, 2015): Today Prime announced that it would not go forward with its proposed acquisition of six Daughters of Charity hospitals. Prime cited the California Attorney General’s onerous conditions as its reason for backing out of the deal. Those conditions, which certainly tested Prime’s commitment to the type of acquisition and future plans for the charity hospitals that the AG’s office envisioned, are detailed below in our original post on this potential sale. The remaining challenge is for Daughters, whose future is uncertain without a purchaser to turn …
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The FTC is on a Roll with its Second Appellate Victory in Two Weeks
Anne Marie Helm, Managing Editor February 26, 2015
The FTC appears to be on a roll. On February 25, 2015, the U.S. Supreme Court affirmed the Fourth Circuit’s upholding of the Commission’s administrative ruling that the North Carolina State Board of Dental Examiners (“Board”) had illegally restrained trade under the FTC Act by forcing nondentists to cease offering teeth whitening services in that state. The underlying facts were that nondentists had been offering teeth whitening services for lower prices than were licensed dentists. In response to complaints from dentists, the Board took action to exclude nondentists from the …
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