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Study: Leading driver of healthcare acquisitions not financial need

Medical Staff Leader Insider, June 26, 2014

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Financial need is no longer the main driver for healthcare organization acquisitions and affiliations, according to a new study released by the Healthcare Financial Management Association (HFMA).


Traditional acquisitions, where a financially strong healthcare organization purchases a weaker one, still occur. However, the results of a survey of 145 senior financial HFMA members reveal that the trend is heading towards mergers between two financially strong organizations for strategic reasons.

More than 80% of respondents said their organizations had either entered into an agreement, were considering one, or are at least open to the idea. Achieving greater economies of scale/cost efficiencies was the most popular driver at 58%, followed by improved and sustained competitive position at 51%. More than a third also said the ability to create a clinically integrated care delivery network was a driver. Just 23% said access to capital was an important reason to consider an acquisition.

Respondents also identified several expected improvements to their organizations’ capabilities from an acquisition such as restructuring of costs, better access to patient population data analytics, and improved management of care continuum by physicians.

Source: HFMA

 



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