...Acquisitions Driving Better Results: LifePoint Health, Inc. (LifePoint) remains primarily a rural market operator, but the company has recently been deploying capital to buy hospitals in faster-growing markets, as well as making acquisitions to build out the network of facilities in certain of its existing markets. This strategy has contributed to improving trends in patient volumes and pricing, although operating margins have compressed as the company integrates less profitable acquisitions. Improved Mix Lessens Headwinds: LifePoint's legacy hospital portfolio exposed the company to certain operating challenges. These included high volumes of uninsured patients, sensitivity to trends in low acuity conditions like the seasonal flu, declining levels of short-stay admissions and a greater macroeconomic sensitivity of patient demand. Fitch Ratings believes the company's improved geographic mix will drive better organic operating trends as an increasing number of the recent acquisitions are...
