Category Archives: Leadership

Billionaire unloads $15M of CHS stock

Posted on by • Posted in For-Profit, Health System, Investment, Leadership, Management, Strategy • Leave a comment
https://www.beckershospitalreview.com/finance/billionaire-unloads-15m-of-chs-stock.html?origin=CEOE&utm_source=CEOE&utm_medium=email&utm_content=newsletter&oly_enc_id=2893H2397267F7G
Chinese billionaire with ambitions to reshape investment models | Financial Times

Chinese investor Tianqiao Chen and his group of companies have a 7.1 percent stake in Franklin, Tenn.-based Community Health Systems after recently selling more than 1.7 million shares of the company, according to a Securities and Exchange Commission filing.

Mr. Chen and his Shanda Group company affiliates sold 1.73 million shares of CHS from March 4-5 for between $8.70 and $8.73 per share, bringing in a total of $15.1 million. The move comes after he sold more than 16 million shares of CHS between Nov. 10 and Jan. 15. 

Mr. Chen, a pioneer in China’s online gaming industry, began buying up shares of CHS in 2016. The last public comment the investor made about CHS was in 2018, when Shanda Group said it had a “good relationship” with CHS and supported the company’s strategy and management team.  

Health systems falling further behind the industry in size

Posted on by • Posted in Health System, Hospital, Hospital Industry, Innovation, Leadership, Leadership Vision, Market Consolidation, Market Power, Market Share, Market Trends, Relevance, Strategy, Sustainable, Value Architect, Value Creation, Value-Based Healthcare, Vertical Integration • Leave a comment

https://mailchi.mp/05e4ff455445/the-weekly-gist-february-26-2021?e=d1e747d2d8

Even though signs point to a post-COVID spike in health system mergers, retailers, insurers, and other healthcare industry players already far exceed health system scale. Even the largest of the “mega health systems” pale in comparison to other healthcare companies up and down the value chain, as shown in the graphic above. And with the exception of pharma, these other industry players have seen revenues surge during the pandemic, while health system growth has stagnated. 

According to a recent report from Kaufman Hall, hospitals saw a three percent reduction in annual total gross revenue in 2020. The majority of the decrease stemmed from a six percent decline in outpatient revenue, as volumes plummeted during the pandemic. 

The largest companies listed here, including Walmart, Amazon, CVS, and UnitedHealth Group, continue to double down on vertical integration strategies, configuring an array of healthcare assets into platform businesses focused on delivering value to consumers. 

To remain relevant, health systems will need to increase their focus on this strategy as well, assembling the right capabilities for a marketplace driven by value, at a scale that enables rapid innovation and sustainability.