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News Release: H2C Perspectives

The Evolution of Healthcare Transformation: From Scale to Integration – September 6, 2018

 What happens when economies of scale are not enough? We believe it likely the era of consolidation among hospitals will begin to slow as markets mature and attention shifts to the next stage of health care’s evolution.

Familiar to nearly every healthcare provider and commercial health plan is that government reimbursement rates barely cover healthcare delivery costs, if that. Also well-known is that healthcare delivery costs have been increasing at rates that exceed inflation and government reimbursement trends—and are expected to continue to do so. Compounding this trend is the influx of additional Medicaid patients in many states following implementation of the Affordable Care Act and the absolute certainty that demographic trends will result in substantial and disproportionate increases in the utilization of healthcare services by lower-paying, higher-utilizing, government-insured patients.

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