Udow-Phillips says the deal will likely face more than a passing glance from the FTC.
"Every merger these days is getting a lot of scrutiny," she says. "In this case there is quite a bit of competition in the marketplace in this region and so I am predicting it will go through with regulatory approval but we can't be 100% sure."
Better Negotiating Ability
Baumgarten says the launch of Beaumont Health comes as hospitals in the Detroit have seen inpatient days drop steadily since 2007. "Even the surge in enrollment in the Medicaid expansion and individual plans is unlikely to change that trend line. That's one reason why I think that the assurances offered of achieving savings with no layoffs may not be very reassuring," he says.
"Further, Medicare and other payers are pressing hospitals to reduce readmissions, linking payments more closely to performance and cost savings. These hospitals are hoping that investments in health IT and care management systems spread over a larger organization and more patients will have a better return."