Why Private Equity Is Buying Hospitals & Shutting Them Down
Last month, a woman showed up to a hospital in Pennsylvania with a barely breathing baby — only to find the hospital closed.
Why? The hospital's owner sent millions to private equity investors instead of investing in healthcare.
Now patients and workers are paying the price.
Prospect decided to put profits over patients by putting Crozer’s assets up for auction.”
The closures will affect Crozer Chester Medical Center in Upland and Taylor Hospital in Ridley Park, which remained open after Prospect closed two other Delaware County hospitals in recent years. Three ambulatory surgery and imaging centers will remain open pending a sale.
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“Prospect Medical Holdings, the for-profit owner of Crozer Health, pillaged these hospitals for their own gain – and today, we see the result of their greed and mismanagement with the announced closure and loss of critical health care services for the people of Delaware County,” Gov. Josh Shapiro said in a statement.
Crozer Health System has received $5 million in annual state funding for the last decade. Shapiro said his office would continue fighting for the patients who have been harmed by the closures.
“Prospect caused this crisis, and they must be held accountable for their reckless actions that have led to today’s announcement,” Shapiro said, adding that the bankruptcy process should include a full review of the company’s conduct and mismanagement. He also called on lawmakers to pass legislation he has proposed to get private equity out of the health care business in Pennsylvania.
The closures will leave Delaware County, population 576,000, with only two hospitals, owned by Main Line Health and Trinity Health Mid-Atlantic. Prospect, with more than 2,600 employers, is one of the county’s largest employers. It owns 16 hospitals in California, Connecticut, Pennsylvania and Rhode Island.
Gov Shapiro Plan Protect PA Health Care Private Equity ..
Governor Shapiro Announces Plan to Protect Pennsylvanians’ Health Care from Private Equity, Deliver New Support for Southeastern Pennsylvania in the Wake of the Crozer Closure
Medical Properties Trust
https://www.medicalpropertiestrust.com/
How private equity is reshaping Pennsylvania health care
The Landlord Gutting America’s Hospitals
A real estate company buys up hospitals and then leases them back to health care systems. Dozens of its hospitals have gone bankrupt.
https://revealnews.org/podcast/medical-properties-trust-steward-health-hospitals-private-equity/
In the closure of Crozer hospitals, a warning about private ...
Predatory finance meets magical thinking at Crozer-Chester
Private Equity Firms Back Floating Rate Loans
https://rumble.com/v6rxqlt-private-equity-firms-back-floating-rate-loans.html
Prospect Medical Holdings finds buyer for Crozer Health
https://www.fiercehealthcare.com/hospitals/prospect-medical-holdings-finds-buyer-crozer-health
Former Crozer employees gather as hospital officially ...
https://6abc.com/post/crozer-chester-medical-center-officially-closing-friday/16301001/
ChristianaCare wins bankruptcy auction to take over ...
Prospect Medical Holdings closed two of its four hospitals in Delaware County, Pennsylvania.
The hospitals that closed are Crozer-Chester Medical Center and Taylor Hospital.
These closures are part of a larger plan to wind down operations at Crozer Health, which is owned by Prospect.
Two hospitals to close after Pa. officials provided $40 ...
Joann Fabrics, Party City, Forever 21, Big Lots—ALL going bankrupt. But here’s the thing: Most of their stores were still making money.
So why are they collapsing? Because Private Equity has found a way to rig the system AGAIN.
In 2008, banks used adjustable-rate mortgages to take down the global economy.
Today, Private Equity is using adjustable-rate BUSINESS debt to do the same thing—except this time, they’re taking down pensions, jobs, and entire industries.
The next financial collapse is already happening… and almost NO ONE is talking about it.
Basically private equity is using a version of the 2008 Financial Crisis using a very not well known financial tool called back floating debt.
Essentially private equity have taken out low interest loans on the private retail outlets they have majority interest in and as collateral they use the retail outlets cash flow to service the loans.
Just like in the 2008 Financial Crisis mortgages were package into collateralized depth obligation (CDOs), well these private equity loans are package and sold to pension funds also in the form of Collateralized Loan Obligations (CLOs). The problem is these CLOs are filled with back floating rate debt loans which is a euphonism for an adjustable rate loan.
These loans have started to adjust and once cash flow rich businesses like Party City, Joann’s, Forever 21, Big Lots, Hooters, etc. (all owned by private equity) are no longer cash flow rich, can't meet the new loan payments and are declaring bankruptcy.
Here's the problem, the pension funds holding on to these CLOs will be left holding the bag.
Floating-Rate Loan Market Monitor – Q1 2025
Floating-Rate Loan Market Monitor – Q4 2024
Back floating rate debt. Is this the next financial crisis?
What Are Floating Rate Loans and How Do They Work?
https://accountinginsights.org/what-are-floating-rate-loans-and-how-do-they-work/
The case for floating rate loans -
Seek higher income with lower interest rate risk
BlackRock Floating Rate Income Fund - U.S. News
https://money.usnews.com/funds/mutual-funds/bank-loan/blackrock-floating-rate-income-fund/bfrax
6 Mega Banks Which May "Bail You In" | G20 Bank Bail-In Laws
https://rumble.com/vt5967-6-mega-banks-which-may-bail-you-in-g20-bank-bail-in-laws.html
They will be Decimating the dollar and traditional banking systems. Turning to a digital system.
Banks are in a precarious spot right now.
Banks are complaining that they cannot get employees and they are in serious need of help.
The last time our economy took a dive the bags for bailed out by the government.
That will not happen this time because the banks will be bailed out by the depositors.
This is called a bail in.
G20 - (n) the world’s largest 19 national economies, including the USA, and the European Union together, a group of 20.
Additionally,
there are representatives of the International Monetary Fund (IMF) and the World Bank. The G20 finance ministers and central bank governors began meeting in 1999,
at the suggestion of the G7 finance ministers in response to the financial crisis in the 1990s.
Bailin - (v/n) restructuring of a financial institution on the brink of failure, by forcing its creditors and unsecured depositors to take losses on their holdings.
It often gets regarded as a rescue of last resort to help a troubled financial institution's ability to attract future business.
A bail-in is different from a bail-out,
which involves the rescue of a financial institution typically by government credit extensions into the failing private sector.
Why Bank Bail-Ins Will Be the New Bailouts
H.R.4173 - Dodd-Frank Wall Street Reform and Consumer Protection Act
https://www.congress.gov/bill/111th-congress/house-bill/4173
'Legalized' G20 Bank Bail-In Laws
https://ncrenegade.com/legalized-g20-bank-bail-in-laws/
New Financial Crisis Laws: Bank Bail-ins, Money Market Freeze
https://sdbullion.com/blog/new-financial-crisis-laws
Can banks legally confiscate your deposits without your permission?
Bank deposit Bail In law is biggest threat to average USA
New G20 Rules: Cyprus-style Bail-ins to Hit Depositors AND AND Pensioners
Resolving Globally Active, Systemically Important,
Financial Institutions
https://www.fdic.gov/about/srac/2012/gsifi.pdf
More than 4,000 bank branches in the UK have closed in the past six years as lenders increase digital services for customers
So… if a large bank fails in the US, the FDIC steps in and takes over, replacing management,
and works to shrink the bank by writing-down liabilities and converting debt into equity.
In other words…
any liability at the bank is in danger of being written-down should the bank fail.
And guess what?
Deposits are considered liabilities according to US Banking Law and depositors are creditors.
KEY FACTS
Huntington Bancshares, Wells Fargo, Sierra Bancorp all announced branch closures in the past few days in Ohio, Philadelphia and California respectively.
More than 4,000 bank branches in the UK have closed in the past six years as lenders increase digital services for customers, said S&P Global Market Intelligence, citing data from UK consumer advocacy group Which.
In 2020, 368 bank branches alone shut down in the UK, led by Barclays which closed 105.
Already in 2021, TSB Bank plans to close 155 branches, Santander UK will shutter 111, HSBC Holdings, 82 and Barclays, 63.
Low interest rates have also squeezed banks’ net interest margins, prompting them to cut operational costs elsewhere, S&P noted.
The move toward expanded digital services, pressures arising from the pandemic and a desire to cut costs has led to thousands of bank branches to close on both sides of the Atlantic, a pattern that seems irreversible to many observers.
Bank Bail-in Laws
Since the end of 2014, new G20 Bank Bail-In Laws have been signed and put into supra-national law.
Average bank depositors are now legally treated as unsecured creditors even in the largest economies of the world.
Form 424B2 BARCLAYS BANK PLC
https://www.streetinsider.com/SEC+Filings/Form+424B2+BARCLAYS+BANK+PLC/19376567.html
US Banks Closed Record Number of Branches
https://www.pymnts.com/news/banking/2022/us-banks-closed-record-number-of-branches-in-2021/
3 Major Banks Plan More Branch Closings As Thousands Shutter—In U.S. And U.K.—Amid Cov, Digital Growth
LEGALIZED BANK BAIL-INS
https://sdbullion.com/legalized-bank-bail-ins
EXCLUSIVE-IMF, 10 countries simulate cyber attack on global financial system
Banks close record number of branches in 2021
U.S. banks close nearly 4K branches in 2021,
https://www.pymnts.com/news/banking/2022/us-banks-closed-record-number-of-branches-in-2021/
The New Banking Crisis — In Two Frightening Graphs
https://wallstreetonparade.com/2016/09/the-new-banking-crisis-in-two-frightening-graphs/
New Financial Crisis Laws: Bank Bail-ins, Money Market Freeze
https://sdbullion.com/blog/new-financial-crisis-laws
Most people are too busy with their day to day lives to know about the real G20 Bank Bail-In threat to their potential big bank saving.
Sabotaging Small Banks
https://rumble.com/v2e5rh4-sabotaging-small-banks.html
How The Banks Work And Why They Are Collapsing
https://rumble.com/v2ilc0c-how-the-banks-work-and-why-they-are-collapsing.html
original link on More Perfect Union
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