M&As CAN BE A STRATEGIC OPPORTUNITY IN A HIGHLY FRAGMENTED INDUSTRY
By Cain Brothers
A recent panel discussion by healthcare providers highlighted that they each faced consolidation pressures from healthcare reform.
Assuming healthcare reform isn’t struck down by the U.S. Supreme Court, the key drivers include daunting capital needs, major changes in the reimbursement model and the mechanics of healthcare delivery, while maintaining an obligation to the community to provide quality healthcare. The pending reimbursement pressures in the context of Medicare and Medicaid cuts, as well as the pressure expected from the formation of healthcare exchanges, will also make it very hard for community hospitals to maintain independent sustainability.
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