As for-profit Tenet Healthcare Inc. shrinks its hospital portfolio, the Alabama hospital has found a surprise buyer: Florida-based Orlando Health.
Orlando Health has annual revenue of more than $6 billion and profit margins higher than most of its peers. Hospital system executives said the move across state lines to acquire five Birmingham-area hospitals is part of a push to serve the southeastern U.S., even though most of its existing 17 hospitals are still in Florida.
It's not surprising that multi-billion dollar health systems have ambitions to expand beyond their home states. This is especially true as hospital systems continue to merge at a frenzy, increasingly across multiple states, while study after study concludes that hospitals are using their newfound market power to inflate prices.
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