← Becker’s Healthcare Podcast
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- [00:00]
A
This is Scott Becker with the Becker's Healthcare Podcast. I'm thrilled today to be joined by editor in chief Alan Condon. Alan covers the financial side of health care really closely, can always tell us what's going on. What are you seeing, what he's watching? Alan, I'm going to ask you to take it away. What are a couple of the stories that you're watching closely in health care currently? What's top of mind? Yeah.
- [00:22]
B
Great to be back on the podcast after brief little getaway to Florida last week, Scott. But yeah, I think first and foremost, I think the big, big story, certainly in the healthcare finance world as far as it relates to hospitals and health systems today is Common Spirits has a new CFO coming in January. Now, this is something that was teased for quite a while. Recently interviewed current CFO Common Spirit Dan Morrissette on the Becker's podcast recently had the pleasure of speaking to him, getting to know him a little bit. Told me he was stepping down at the end of this year. But officially Common Spirit have announced who will be his successor. Now that's Michael Browning. He'll be stepping into that role when Dan indeed retires later on this year. Michael joined from Ohio Health, where he served as CFO since 2019. But again, I think the real story here and the big story certainly a little bit of a Runway before Dan Marsett retires from this role called Time on really an incredible career in healthcare finance. Fantastic leader, had the pleasure of interviewing recently. He's been with Common Spirit since it was formed in 2019. That was through that merger of Dignity Health, Catholic Health Initiatives, and really fantastic leadership through the pandemic throughout a ton of growth, mergers and acquisitions. Common Spirit where it stands today. Now a $40 billion system operates 138 in hospitals across the country. Dan, big priority in recent quarters, has been really leading the turnaround over the last few quarters to really get that Common Spirit back into the black along with a number of other strategic initiatives in terms of digital transformation, capital growth, M and A as well. So huge, huge leadership move for Common Spirit here at a key time in its turnaround.
- [02:15]
A
Thank you. And the only thing I'll add to that is Dan Morsec is an incredible leader. We got to know him more than a decade or more ago and he was one of the early leaders that started to join us and speak at Becker's healthcare event maybe 15, 20 years ago. And so I am, aside from Dan being an incredibly great leader and a remarkable thinker and leader in person, I am so thankful for his sharing his thoughts and joining us at Beckers Healthcare over the years. I am eternally indebted to Dan. Just a wonderful, wonderful leader in person. We're obviously just a huge fan of the common spirit system which has been so supportive over the years as well, but just a remarkable leader. Alan, let me turn it back to you, but I can't say enough about Dan Morris that as a person and leader.
- [03:00]
B
Absolutely. Just to echo that as well. Had a few, few touches with Dan. Fantastic person, fantastic system, certainly with some olives in his upcoming retirement. But a big, big move there. An exciting move for Michael Browning as he transitions from Ohio held to common spirit. The next story. Scott, I think just third quarter we're now, we're now into the fourth quarter but looking back at M and A hospital mergers and acquisitions, where are we standing? What can we expect for the future? Really seeing a significant uptick in M and A really regaining some of that momentum that we've seen in previous years gone by. So the latest report from Kaufman Haas certainly indicates this echoes that sentiment. Seems like now that the one big beautiful bill has passed, hospitals health systems have more clarity on that policy to re inform their growth strategies. Certainly expect more systems to continue to seek resilience and also growth by investing beyond the hospital building their capabilities in areas such as outpatient care, labs, health management. But market activity certainly from a hospital M and A standpoint will likely stay elevated in the coming quarters as hospitals health systems really redesign their strategic initiatives, move forward with some of these new deals. We did see a few big, big hospital acquisitions mergers close in Q3 and then some new forms of partnership as well that are expected to continue through Q4 into 2026 as well. Some of those trends that we're seeing are larger scale systems seeking capability and competency based affiliation models. Some really size alone standable hospitals and health systems reassessing their long term future. And then the last packet of that tranche would be for some of those distressed hospitals of which there are certainly unfortunately many, a real swift pursuit of long term sustainable partners or acquirers certainly for independent hospitals who are still struggling, really seeking those financial partners and health system partners in the future as well. So M and A overall really regaining its momentum. Likely to likely do expect to see that in Q4 and into next year as well.
- [05:19]
A
What were the names of a couple of the bigger system mergers that happened in the third quarter? Can you, can you tell us the names of a couple of those?
- [05:24]
B
Yeah, absolutely. So I think the big one we saw Deaconess House system, I believe October 1st. So a huge, huge system in three different states. They acquired Jenny Stewart Health, I believe that was the 19th hospital that joined Deaconess Health System. So one big acquisition there folding under the larger health system. One of the most interesting I believe was General Catalyst Health Insurance Transformation Company that acquired Summa Health, I believe in Akron, Ohio. The one that was significant about that deal is transition Summa Health into a for profit health system backed by significant investment from venture capitalist company Hatco. So two, two key, two key deals that just closed October 1st along with many others. But just two quick call outs from from the recent quarter.
- [06:18]
A
No, thank you so much. It's fascinating to watch. Thank you very much, Alan. Great to visit with you on the Beckers Healthcare podcast. Just fantastic as always. Incredible job. Thank you very much.
- [06:28]
B
Always a pleasure. Thanks so much. Scott.