Merger and acquisition (M&A) activity within the healthcare industry shows no sign of diminishing. The fundamental need for greater scale, geographic coverage, and increased integration remains unchanged for providers, and this will sustain M&A activity for years to come.
Evidence of the M&A trend’s resiliency is found throughout our 2019 HealthLeaders Mergers, Acquisitions, and Partnerships Survey. For example, 91% of respondents expect their organizations’ M&A activity to increase (68%) or remain the same (23%) within the next three years.
Faced with such far-reaching and transformative new relationships, what are healthcare providers to do? As things currently stand, even the largest health systems lack the scale to negotiate on equal footing with most insurers, and these new hybrid organizations combine scale, technology, and innovative structures.
However, there is no need for providers to panic—these megamergers are still in the early stages of implementation, and the fundamental mission of healthcare has not changed.
Download the latest HealthLeaders Intelligence Report to learn more!