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Hospital M&A can help expand and protect care, AHA says

As hospitals deal with the financial fallout of the COVID-19 pandemic, some are exploring mergers with bigger systems, a move that the American Hospital Association says can "expand and preserve access to care.

Hospital acquisitions are associated with a 3.3 percent annual reduction in operating expenses per admission at the acquired hospital and a 3.7 percent decrease in net patient revenue per adjusted admission, according to a March 16 AHA news release.

"A range of partnerships, mergers and acquisitions enable hospitals to expand service offerings, broaden networks and access to specialists, improve quality and better serve patients where they live," the AHA release said. "They provide scale to help reduce costs associated with obtaining medical services and supplies or prescription drugs, and enable health systems to reduce other operational expenses."

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