Health reform is likely to decrease inpatient revenue, increase hospitals’ cost of compliance with government programs, and encourage clinical integration. Generally speaking, larger organizations should be better positioned to compete in the changing environment. This article, with authors from McGuire Woods and Juniper Advisory, gives a pragmatic overview of the current hospital M&A market. It is different now because financial concerns are not as strong a driver as they have been in the past for smaller providers. The authors describe the more popular types of deal structures. The relative positions of for-profit and not-for-profit systems in so far as they are approaching mergers and acquisitions is also addressed.
Source: Brown, T.C., Jr., and others. Current trends in hospital mergers and acquisitions. HFM. Healthcare Financial Management;66(3):114-118, 120, Mar. 2012. Click here for full text from publisher: http://www.hfma.org/Templates/Print.aspx?id=31062 Posted by AHA Resource Center, (312) 422-2050, rc@aha.org
Filed under: Mergers and acquisitions, Posted by Kim Garber |
American Hospital Association Resource Center Blog 