Consolidation among healthcare providers has continued at a significant rate over the last decade. In 2005, 45% (2,220) of acute, non-federal community hospitals were independent; by 2015, the figure had fallen to 34% (1,677)[1]. Factors driving this consolidation have been well articulated and thoroughly examined, and include financial distress, competitive pressures, the challenges of success […]
Acquiring physician practices may be the key for hospitals and health systems to strengthen market position.
Having a well-known brand name can provide negotiating leverage and enhance an organization’s reputation for physician and staff recruitment.
Although the Bipartisan Budget Act of 2015 made hospital-physician joint ventures less financially attractive, those arrangements could still be strategically smart. Michael Rovinsky discusses the benefits of hospital-physician joint ventures.
Once a letter of intent (“LOI”) is executed for the acquisition of a community hospital or health system, a due diligence process that assesses all aspects of the target organization will ensue. A key component of the due diligence process is developing a deep understanding of the likely future financial performance of both the organization […]
Proactive collaboration allows AMCs and community counterparts to benefit from each other’s strengths, creating value that wasn’t necessarily sought or derived from more traditional partnering approaches. In Part I of this blog post on partnerships between community hospitals/systems and academic/major teaching centers (“AMCs”) we: Explored changes in AMC rationale for pursuing partnerships and partner attributes […]
Industry transformation requires major adaptations from healthcare organizations – to increase scale, enhance scope, and achieve differentiation, among others. Partnerships can be a key vehicle to facilitate and pursue these adaptations. Partnerships between academic and community hospitals/health systems are a unique sub-set of healthcare provider partnerships. Academic providers aligning with their community counterparts is, of […]
Your selection of post-acute care (“PAC”) partners can make or break your value-based payment programs and care management initiatives. Even where fee-for-service is still dominant, having the right post-acute care partners can improve economic performance by reducing length of stay and minimizing acute care readmissions. Most health systems and hospitals do not own PAC facilities, […]
John M. Harris and Molly Johnson write that smaller healthcare providers seeking to engage in population health management may well have other options other than a merger or acquisition.
It’s easy to get swept up in merger mania. Many industry observers see rapid consolidation with no end in sight. In fact, a recent report by one major consulting firm posited that only about half of the current health systems will be left standing in 10 years. This conclusion was supported by analyses from […]