Recent trends are changing the scale equation for children’s hospitals. However, the right new approach for each hospital will depend on its needs and strategic aspirations.
Topic Scale & M&A
The US health insurance industry continues to be defined by uncertainty. The 25 articles in this compendium can help health insurers navigate the changes ahead.
Historically, larger scale has offered hospital systems a number of advantages; however, reform and other market changes are altering the scale equation for hospital systems.
Whether scale brings competitive advantage to payors is a topic of hot debate. This post challenges standard assumptions about scale and sheds light on how to achieve desired value.
Regulatory changes and the economic recession have disrupted the U.S. healthcare industry, threatening to erode the advantages of market leaders. As many payors turn to M&A strategy, its imperative for them to understand the inherent risks and the factors that guide M&A success.
This series of articles examines transformational imperatives specific to health systems in the post-reform era, drawing on extensive work with healthcare stakeholders across the value chain.
Given today’s realities, health systems must look beyond the traditional economies of scale if they want to reap the full benefits of M&A. They must consider other economies that M&A can offer, commit themselves fully to the effort, and execute flawlessly.