Operated acute care hospitals primarily in the southeastern United States.
Acquired by KKR2005-07-01
Leading operator of hospitals in growing southeastern markets
Significant staffing cuts, with registered nurses (RNs) replaced by lower-cost licensed practical nurses (LPNs) or nursing aides
Sale-leaseback transactions of hospital real estate, extracting equity for investors
Aggressive upcoding of patient bills to higher-reimbursement procedures and diagnoses
Elimination of unprofitable but essential services like maternity care, psychiatric care, and rural care
Extraction of large management and consulting fees from the acquired hospitals
Announcements of 'optimization' initiatives and leadership changes
Staffing cuts under 'efficiency' programs, service reviews begin
Quality of care noticeably declines, with longer wait times and reduced access to essential services
Major quality issues emerge, including department closures and potential scandals
Potential bankruptcy, hospital closures, or sale to another operator at a fire-sale price
Other companies that followed a similar path after PE acquisition
Be vigilant for any changes in the quality of care, such as longer wait times, reduced access to services, and signs of cost-cutting measures
Stay informed about any changes in hospital leadership or service offerings
Consider seeking care at alternative healthcare providers if the quality of care at Health Management Associates-operated hospitals declines significantly
Community-focused healthcare
Integrated managed care consortium