Integrating health care delivery systems can help achieve such efficiencies, and integration can occur in numerous ways, some of which include consolidation.Unfortunately, antitrust considerations require structural integration to allow health care delivery systems to do joint strategic planning and to move funds across components to support population health strategies.It comes eventually to any big industry, whether farming, auto-making or banking.It’s often feared, at least until one becomes familiar with it, or its alternative.If you subscribe to any of our print newsletters and have never activated your online account, please activate your account below for online access.By activating your account, you will create a login and password. And because health care delivery systems sell goods that are not fungible and have no shelf life–bed days of care for hospitals and time for office visits for physician groups–the only way to maximally use their fixed-cost assets is immediately.
Every hospital merger case is essentially about health insurance contracting.
Mergers are seen as way to help struggling hospitals through these especially tough times.
When merging with a larger system it can help with capital needs as well as with technology and infrastructure upgrades. Luke’s Hospital and Health Network publicized its acquisition of Warren Hospital in Phillipsburg with plans to revitalize maternity services and pour million in for the intensive care unit.
With tight margins as the uninsured population grows and uncertainty as healthcare reform approaches, hospitals and physicians groups across the country are seeking merger opportunities.
In 2011, there were 86 hospital merger and acquisition deals, up from 77 in 2010, and 107 physician group merger and acquisition deals, up from 67 in 2010, according to Irving Levin Associates, Inc.