Industry Pulse: October 2010

PHOENIX – There has been growing speculation during the past several months that the healthcare industry will consolidate because healthcare reform, the recession, reduced reimbursement rates and other challenges have made it increasingly difficult for smaller providers to compete. Recently, a flurry of merger and acquisition (M&A) activity seems to be giving credence to those predictions. Although there are variations on the theme, most of the M&A activity follows a distinct pattern in which smaller, struggling hospitals or health systems are being merged into larger, stronger hospitals or systems. In some cases, two or more smaller hospitals are merging to gain strength and efficiency from an increase in size. But in northern Colorado, it was recently announced that two large systems are teaming up on the creation of a new

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