One of the most important tools that hospitals can use to increase access and quality of care and manage risk and financial pressures are mergers and acquisitions, notes the American Hospital Association. A range of partnerships, mergers and acquisitions enable hospitals to expand service offerings, broaden networks and access to specialists, improve quality and better serve patients where they live. They provide scale to help reduce costs associated with obtaining medical services and supplies or prescription drugs, and enable health systems to reduce other operational expenses.
M&A can help hospitals improve access to care by broadening the types of specialists or services that are available to patients. According to an analysis by Kaufman Hall, nearly 40% of affiliated hospitals added one or more services post-acquisition. Mergers and acquisitions also are a vital tool that some health systems use to keep financially struggling hospitals open, averting bankruptcy or even closure.1 When hospitals become part of a health system, the continuum of care is strengthened for patients and the community, resulting in better care and decreased readmission rates.
This is a significant issue for rural hospitals, where mergers and acquisitions have played a critical role in preserving access to care. Read more.
