What hospitals should think about when considering mergers

What hospitals should think about when considering mergers

For strategic reasons or simply to survive, more hospitals and health systems are expected to be looking closely at mergers, acquisitions or some type of partnerships, analysts say. Hospitals that are weighing mergers or partnerships shouldn’t look at those transactions as a way to solve just one problem, such as getting more leverage with payers, said Anu Singh, managing director of partnerships, mergers and acquisitions at Kaufman Hall, a healthcare consulting firm. Organizations and leaders need to understand where they have competitive advantages, and where they are coming up short against their peers. When systems are missing on a number of their strategic goals, that could be a sign that organizations should start asking questions about whether continuing as an independent entity is the best way forward.

Medigy Insights

More hospitals and health systems are expected to consider mergers, acquisitions, or partnerships as a strategic move or a means of survival, according to analysts. Anu Singh, the managing director of partnerships, mergers, and acquisitions at Kaufman Hall, advises hospitals not to view these transactions as a singular solution to address a specific issue, such as gaining leverage with payers. Instead, organizations and leaders should assess their competitive advantages and areas where they fall behind their peers. If healthcare systems are consistently falling short of their strategic goals, it may indicate the need to evaluate whether remaining an independent entity is the most viable path forward.


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