In 2015 the amount of hospital
structure changes, or ‘hospital transactions’ i.e. mergers, acquisitions, joint
operations and joint ventures has increased by 18% in 2015. It should also be
pointed out that the increase in hospital transactions increase by 70% since
2010. Of the 112 transactions in 2015 83 of them were in the not-for-profit
being acquired.
What has caused the increase in hospital transactions so
dramatically since 2010? Many would point to the changes with healthcare reimbursement
brought on by the Affordable Care Act.
Some smaller community hospitals feel
the financial stress of needing to provide more services to patients at a
reduced Medicare and Medicaid reimbursement rate as well as an increase in free
services covered under the umbrella of the Affordable Care Act. Larger hospital
companies are buying up these smaller hospitals as they have a greater ability
to afford these financial changes.
Share your Thoughts:
Do you think patients will benefit
from the increase in healthcare transactions? How should healthcare management change
or improve based on these changes? How do healthcare managers succeed and adapt
to these changes?
Thank you to Baylor University MBA
in Healthcare Program for the knowledge to navigate through an ever changing
Healthcare system environment.
Sources:
https://www.advisory.com/daily-briefing/2016/01/25/number-of-announced-hospital-transactions-jumps-nearly-twenty-percent-in-2015
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