Consolidating units in hospitals
This flurry of mergers marks a momentous occasion as the way healthcare is delivered is changing and hospitals struggle to survive in this competitive market. are reducing unprofitable services while expanding more lucrative lines to help protect margins.3 Reasons Why Merging Is Advantageous Struggle to Survive: Small, not-for-profit and other types of hospitals seek mergers for a range of reasons as the atmosphere to stay afloat grows tougher. A 2009 American Hospital Association study of 1000 hospital executives found one fifth of them reduced services that lost money including: behavioral health, post-acute care and patient education services while investing in services that deliver profits like neuro-surgery and interventional cardiology.In the process, the law has become a fountain of federal regulation.
Y., Ted Sigrest, MD, has long noted the cramped quarters of the three pediatric inpatient floors.The Affordable Care Act (ACA), often called Obamacare, accelerates the pernicious growth of market consolidation in American health care. The national health care law reinforces the trend of providers, including doctors and hospitals, to merge into large regional health systems that dominate local markets.The law also introduces new rules and restrictions that will reduce the degree of competition in the insurance market.With tight margins as the uninsured population grows and uncertainty as healthcare reform approaches, hospitals and physicians groups across the country are seeking merger opportunities.In 2011, there were 86 hospital merger and acquisition deals, up from 77 in 2010, and 107 physician group merger and acquisition deals, up from 67 in 2010, according to Irving Levin Associates, Inc.