No Small Thing – The Growth of the HealthCare System

Mergers and acquisitions are all over the healthcare news, and have been for a while now. As described in a recent article in Modern Healthcare, hospitals and other healthcare facilities are coming together to form “sometimes behemoth” systems with the ultimate goal to achieve scale to create operational efficiencies.

The article gives examples of failures and successes and highlights many of the challenges that come with rapid growth. Overall, Modern Healthcare concluded that “hospital system executives continue to pursue size and scale through mergers despite the evidence from some recent deals that problems undiscovered during due diligence—or from culture clashes—may make the marriage hard to consummate.”

Regardless of the method, whether it be by merger, acquisition, collaboration or another form of partnership, I believe obtaining a market presence large enough to benefit from scale is critically important in today’s healthcare environment. In my opinion, this article does a great job of highlighting some of the pitfalls that need to be thought through before entering into any growth arrangement.

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