Hospital Consolidation Accelerates Amid Financial Pressures and Competition
Becker's Hospital Review
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Contributed by: Kate Gamble
Summary
Hospital consolidation is increasing as healthcare organizations respond to financial pressures and competitive pressures through mergers and acquisitions. This trend has been bolstered since 2010 and gained momentum after a temporary slowdown during the COVID-19 pandemic. Consolidation can be either vertical or horizontal, driven by factors like rising healthcare costs and a shift towards value-based care. As independent providers diminish, health systems are pursuing out-of-market acquisitions to avoid regulatory scrutiny from the FTC. Recent mergers, such as the one between Jefferson Health and Lehigh Valley Health Network in Pennsylvania, exemplify this shift toward larger health systems that aim to enhance service offerings and operational efficiency.
