DOTmed November 19, 2021
M. Susan Ridgely

Healthcare consolidation is endemic across the U.S. With consolidation — both horizontal (hospitals acquiring other hospitals) and vertical (for example, hospitals and health systems acquiring physician practices) — has come public attention and regulatory scrutiny.

Proponents of consolidation argue that size generates efficiencies and offers opportunities to improve care coordination and quality. Critics point to concentrated markets and price demands that exceed the costs of delivering care. Some organizations acquire or are acquired because their executives believe that size will bring leverage in highly concentrated markets. Others just fear being left behind when the dust settles.

Assessing the benefits and risks of consolidation should not be a political or philosophical debate. These are empirical questions — and a growing body...

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Topics: Health System / Hospital, Mergers & Acquisitions / JV, Provider, Trends
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