6 Top Drivers of Healthcare Acquisition, Affiliation Activity

The Healthcare Financial Management Association has released a report on acquisition and affiliation strategies, based on hospital and health system site visits, interviews and 145 responses to a survey sent to senior financial executive HFMA members.

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The executives surveyed were asked to identify the most important reasons for an organization to consider a new organizational arrangement. Here are the six top-identified drivers of acquisition and affiliation activity.

1. Cost efficiencies/economies of scale — 58 percent of executives named this as one of the most important reasons.

2. Improved or sustained competitive position — 51 percent

3. Physician network/clinical integration — 35 percent

4. Ability to manage the health of a defined population —28 percent

5. Capital access — 23 percent

6. Experience with risk contracting — 5 percent

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