Healthcare organizations continually seek to find ways to reduce costs. One of those ways is through mergers. These transactions allow companies to use the expertise of each organization to reduce operating costs and then pass the savings on to their customers.
Below is an article from healthcaredrive.com that describes the various mergers that have been announced over the last few weeks and the impact it can have on healthcare providers and users. After reading the article give us a call at SpendBridge so we can work together to implement practices at your healthcare facility to take advantage of the positive impact from these mergers.
Source: healthcaredive.com | Re-Post SpendBridge 2/1/2018
If done well, the recently announced string of vertical and horizontal integrations could lower costs across the board. The execution required to achieve that, however, is complex and takes time.
December saw a flurry of merger activity underscoring a sense of desperation within healthcare.
A string of high-profile and potentially industry-changing deals surfaced, a mix of vertical and horizontal integrations that could trickle down to smaller companies. If done well, they could lower costs across the board. The execution required to achieve that, however, is complex and takes time.
It started with a bang on Dec. 3 when CVS Health announced a bid for Aetna in a blockbuster $69 billion deal.
A day later, Advocate Health Care and Aurora Health said they planned a merger that would create the 10th largest nonprofit health system in the country.
Two days passed and UnitedHealth’s service arm Optum announced it will acquire DaVita Medical Group, which serves about 1.7 million patients a year at nearly 300 clinics. The final definitive deal of the week was Catholic Health Initiatives and Dignity Health wrapping up an agreement more than a year in the making.
The true bookend of that crazy week, however, was a report that surfaced Dec. 10 of talks between Ascension and Providence St. Joseph Health. If a merger of those two companies goes through, it will create the largest hospital operator in the country with 191 hospitals in 27 states.