Hospital Management

Daily Newsletter

07 August 2023

Daily Newsletter

AAM signs initial LOI for Hazel Hawkins Memorial Hospital

The District Board will review the LOI, which lays the foundation for talks on a strategic alliance.

The American Advanced Management (AAM) has reached an initial letter of intent (LOI) with San Benito Health Care District for Hazel Hawkins Memorial Hospital (HHMH).

The LOI will lay the foundation for talks regarding a strategic alliance.

It suggests the concept of AAM entering a 'lease-to-own' arrangement for the District's assets. This arrangement will involve leasing for several years before full ownership.

The LOI marks the initial phase of a detailed and public process. The District Board will review it at its upcoming meeting, conduct due diligence, and negotiate more terms for this potential tie-up.

AAM plans to collaborate with the local medical team to introduce additional specialities and services to HHMH. Cardiology and inpatient dialysis are among the identified areas, which are expected to retain more local patients.

Hazel Hawkins interim CEO Mary Casillas said: "When we started this process in December, our goals were simple: do all we can to stabilise the finances of the district while maintaining quality healthcare for the community; find a partner or buyer who understood the unique needs of our community; and find a partner who possessed the resources to guarantee a continuum of care delivery for the future needs of our County."

American Advanced Management was founded in 2012, marked by the launch of its inaugural hospital, Central Valley Specialty.

This general acute care speciality hospital is located in Modesto, California, US.

Healthcare companies are hesitant to invest in the metaverse

The COVID-19 pandemic pushed the healthcare industry to rapid digitalization. Increased use of telehealth, telepresence systems, remote diagnostics, predictive AI, and wearable technology is changing how healthcare is delivered and improving patient outcomes. Emerging technologies such as AR and VR are becoming increasingly routine for professional training, surgical assistance, and treatment of psychological and neurological disorders. In the pharma and medical devices industries, AR, VR, and AI are rapidly accelerating drug discovery and manufacturing and generating supply chain efficiencies. New digital opportunities will look to build upon disruptive technologies. However, affordability is a limiting factor to widespread adoption. Per GlobalData estimates, the metaverse market is expected to grow at a CAGR of more than 33% between 2023 and 2030. Although metaverse technologies could reinvent healthcare approaches and bring new experiences to healthcare providers and patients, adoption is still at an early stage. There are currently few use cases in the healthcare industry. The metaverse needs to overcome major challenges for healthcare, including regulation and data privacy concerns. Evidence of proven use cases and participation by a critical mass of users are imperative to drive a shift in metaverse investment.