MANASSAS, Va. – When members of the Healthcare Real Estate Insights™ Editorial Advisory Board met last November in Dallas to discuss the industry, they were asked to make a few predictions about future trends in both healthcare and healthcare real estate. One prediction to emerge from the conversation – initiated by Todd Lillibridge, the CEO of the Chicago-based healthcare real estate firm bearing his name – was a probable increase in hospital system mergers and acquisitions. The reason for such a prediction, of course, is that as many hospitals struggle financially during the current recession, stronger health systems will move in and acquire them. The targets of such acquisitions, according to board members, will be hospitals that maintain strong market shares. Well, proving that our board members certainly have their fingers on the pulse of the industry, one such merger was announced in recent weeks, as Charlotte, N.C.-based Novant Health plans to acquire Prince William Health System of Manassas. Prior to last June, Prince William, which operates Prince William Hospital in Manassas, had been in negotiations for nearly two years to merge with Falls Church, Va.-based Inova Health System, the dominant healthcare provider in Northern Virginia. However, when talks fell through, Prince William officials went looking for a new partne. Even though Novant lost about $174 million in its investment portfolio in 2008, it has pledged to pump about $200 million into growing the Prince William system, which is trying to keep up with the demands of booming Prince William County. The two systems hope to finalize the merger by this coming fall.
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