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What hospital consolidation will look like in 2020

Although the number of announced transactions involving hospitals and health systems fell last year, consolidation in the industry will continue this year as a way to address challenges in the industry, according to Bloomberg Law.

The publication reported that overall activity in 2019 declined because hospitals in major metropolitan areas have already merged.

Despite this, many organizations are still looking to transactions as a way to address growing competition, changing reimbursement, increasing operating expenses and the shift to outpatient care.

This year, be on the lookout for three main transactions, according to the report:

1. Big and small health systems merging to create multistate, megahealth systems

2. Solo hospitals outside of metropolitan areas being absorbed by larger hospitals or systems

3. Hospitals in suburban areas engaging in joint ventures or other less permanent partnerships

Access the full report here. 

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