Why Financial Success Eludes Majority of Healthcare Mergers
Hospital mergers are dicey business propositions.
You probably knew that either instinctively or through experience, but now there's plenty of data to back up the contention. According to a Booz & Company analysis, only 41% of all acquired hospitals outperformed their market two years after the deals were consummated.
Here are the particulars of the study: Booz analyzed a representative sample of 220 hospitals that were acquired between 1998 and 2008 for which pre and post-transaction hospital performance data was available.
They calculated changes in operating income andoperating margin for the acquired hospital over the period two years before the transaction and two years post transaction.
OK, so what does it all mean?
- EHR Systems 'Immature, Costly,' AMA Says
- Better HCAHPS Scores Protect Revenue
- Narrow Networks Cut Costs, Not Quality, Economists Say
- CEO Exchange: Preparing for Population Health
- Interstate Medical Licensure Effort Advances
- 'Early Offer' Malpractice Programs May Spur Reform
- Anthem Blue Cross, 7 CA Health Systems Create New Challenger, Business Model
- 3 Strategies for Retaining Millennial Employees
- Advocate, NorthShore Deal Would Create 16-Hospital System
- How to Build a Health Plan from Scratch