Financial Need is No Longer Leading Driver in Healthcare Acquisitions

A new study released at the Healthcare Financial Management Association's 2014 National Institute in Las Vegas has found acquisitions and affiliations in the healthcare industry are being driven more by strategy than by financial need.

In the past, acquisitions typically involved a stronger healthcare system acquiring a weaker one. The researchers found the current trend involves more mergers and acquisitions between organizations that are financial equals, with an aim of improving quality of care or cost-effectiveness of care.

The study identified many of the key drivers of acquisitions and affiliations in the healthcare marketplace today such as operational efficiencies, creating clinically integrated care delivery networks and accessing sufficient populations for population health management.

"Affiliations that improve value for patients and other care purchasers are likely to be well received," said Joseph J. Fifer, CPA, president and CEO of HFMA, in a news release. "When a merger or acquisition happens for the right reasons, everybody wins."

More Articles on Healthcare Industry Affiliations:

Charlevoix Hospital to Expand Munson Healthcare Affiliation
District One Hospital to Affiliate With Allina Health 
Lahey Health, St. Joseph Healthcare Expand Affiliation

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