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Is bigger better? Mega mergers return to health systems — 3 thoughts

1. Suddenly we are seeing mega mergers again. Here the mergers create scale but often are in nearby markets rather than in the same markets. This provides a greater ability for the mergers to be completed and approved by the antitrust authorities. It also provides a lesser ability for the mergers to be immediately effective.



2. Three of the largest most recent mergers include the just announced Dallas-based Baylor Scott and White merger with Houston-based Memorial Hermann as well as the Cincinnati-based Mercy Health and Marriottsville, Md.-based Bon Secours merger and the Milwaukee-based Aurora-Advocate merger.

3. The Aurora-Advocate merger has not yet delivered expected results. Jim Hinton who will lead the combined BSW and Memorial Hermann merger is a serious CEO. Chuck Stokes the CEO of Memorial Hermann is also exceptional. John Starcher Jr. who leads the combined Mercy Health-Bon Secours merger is an exceptionally gifted CEO.

 

More articles on hospital transactions:

HCA to merge 2 Florida hospitals

Yale New Haven Health to add 6th hospital

Trinity Health forms new 5-hospital system

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