Healthcare mergers and acquisitions are expected to heat up in the next two to three years. But these transactions will look different than they have in the past.
Traditionally, the acquiring party seeks to expand market share or grow into new regions while the acquired party seeks to take advantage of the larger entity’s economies of scale. Sometimes the acquired party is struggling financially and the larger organization extends a lifeline.
But that won’t be enough in the future healthcare ecosystem.
“Hospital consolidation in the coming years will only succeed if it moves beyond mergers of infrastructure into mergers of purpose,” said Paula Ferrada, MD, chair of the department of surgery at Inova Fairfax Medical Campus and division and system chief of trauma and acute surgery at Inova Healthcare in Fairfax, Va. “True progress happens when consolidation fosters collaboration, the new competition, uniting hospitals around shared values, transparency and compassion.”
Financial alignment is still essential as margins continue to tighten and expenses grow, but monetary incentives aren’t enough to sustain the organization. Both entities must have a shared vision for success in the future, Dr. Ferrada said.
“The most resilient organizations will be those that balance fiscal responsibility with the moral imperative to care, invest in people and keep the patient at the center of every decision. At Inova, we’ve seen that sustainable growth depends on bringing clinicians into the decision-making process, ensuring that operational strategy and patient care remain inseparable. When collaboration guides consolidation, we don’t just build larger systems; we build stronger, more human communities of healing.”
Deborah Visconi, president and CEO of Paramus, N.J.-based Bergen New Bridge Medical Center, sees a similar trajectory for future deals.
“Hospital consolidation will continue, but I believe the conversation will shift from bigger is better to stronger together,” she told Becker’s. “The pressure of workforce shortages, reimbursement challenges and infrastructure modernization will push organizations to align more closely, not just through mergers, but through strategic collaborations that expand access and stabilize care in their communities.”
She takes consolidation as an “opportunity to create partnerships that preserve local care” instead of an endpoint. She aims to strengthen safety nets and integrate behavioral health, addiction treatment and medical care to reflect community needs with her strategic moves.
“The future won’t be defined by who owns what, but by who’s willing to innovate, share and lead with purpose,” she said.
Molly Biwer, chief marketing officer of Emory Healthcare in Atlanta, said rapid healthcare transformation will continue in the next few years but always with patients as central to the discussion. She said every strategic decision Emory makes is rooted in improving access to care, the patient experience and overall outcomes – not expanding square footage.
“While market dynamics may drive integration, our focus is on purpose, not size,” she said. “We will pursue relationships that create meaningful value for patients, caregivers and communities – whether through shared innovation, expanded access or the seamless coordination of care. Ultimately, our growth is defined not by how many hospitals we have, but by how effectively we meet the needs of every patient who entrusts us with their health.”
Athena Minor, DNP, MSN, RN, chief nursing and clinical officer of Ohio County Healthcare in Hartford, Ky., has seen the conversations around consolidation look efficient in theory, but the actual results are far messier. The success of future transactions depends on the shared vision, especially to support access to care for rural communities.
“In reality, merging hospital corporations to maximize resources only leads to minimizing the opportunity to meet patients’ needs,” she said. “Our organization has been successful because we know our community, we know the unique challenges facing our people in this scientific location of rural America. The decisions we make are made locally and would not always be looked favorably by a larger organization, but they are best for us and the needs of our people.”
The independence to make decisions serving the community versus a large and sprawling entity can make the difference in quality of care and patient outcomes.
“Business-minded success does not always translate to successful healthcare delivery,” she warned.
