November 19, 2012
Although the healthcare industry has seen a rapid increase in mergers and acquisitions among hospitals and healthcare systems in the past few years, a recent report by Irving Levin Associates indicates transactions seem to be cooling off. Experts point to the Supreme Court’s June ruling on the healthcare reform law and the recent presidential election as reasons transactions have slowed; however, loose affiliations between hospitals and health systems may also be contributing to decreased M&A activity. Below are three benefits hospitals and health systems are finding of bypassing mergers and acquisitions and forming looser alliances:
Overall, hospitals and health systems not ready for the commitment of a merger or acquisition may find a looser alliance beneficial. If you have questions about other benefits or options for looser affiliations, please contact one of the authors.