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Hospital mergers and acquisitions have been increasing in recent years. This study examines the impact of hospital acquisitions on operating costs, pricing, and quality of care. Key findings: Acquired hospitals experienced a significant increase in operating profit (about $60,000 per bed per year) after acquisition. This increase was largely due to reductions in personnel expenses and capital and financing costs. Inpatient revenues also rose about 6% within three years of acquisition. The size of the acquiring system had a significant impact on the cost and revenue changes experienced by the acquired hospital. For-profit acquirers generated larger cost reductions than nonprofit acquirers. Larger acquiring systems generated larger declines in operating costs. There was no evidence that hospital acquisitions improved the quality of care. In fact, there was some evidence of decline, such as an increase in readmission rates for certain patient populations. Overall, the study suggests that hospital acquisitions can lead to significant financial benefits for the acquiring system, but there is little evidence that they improve the quality of care. Sources: National Bureau of Economic Research - Bigger But Not Better: Hospital Mergers Increase Costs and Do Not Improve Quality: https://lnkd.in/eJ5WYgYs American Hospital Association - Hospital Merger Benefits: An Econometric Analysis Revisited: https://lnkd.in/ei98FqeN National Bureau of Economic Research - The Corporatization of Independent Hospitals: https://lnkd.in/e4PEqUA3 #Economics #Plainfield #NJ

Benefits from acquisitions go beyond additional revenue and can be multi-faceted.

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Today, close to 70% of mergers succeed and this number is increasing, moving from a 70% failure rate in the past 20 years. Why? I wrote a series of articles on my website blog that answers this question from my experience of leading both hospital and physician group acquisitions and partnerships, including expanding a health system in CA region, growing from 350 to 800 provider network. Here are some highlights from this HBR report on successful approaches when leading M&A. 🎡Diversify and take a broader approach. Pursue deals to develop a broader geography, build new capabilities and find new sources of talent. 🔍Be sophisticated and smart about due diligence. Be the authority on the business you are acquiring. Due diligence is more than financial spreadsheets. Conduct cultural assessments to understand how these groups come together and adopt the norms and values. Assess talent and capabilities to assess what is needed post merger into integration. 📌Experience and expertise matter. I created and led a mighty team of specialists and with every deal we took our learnings and leveraged those into the next deal. I created a repeatable model and M&A playbook and we became extremely proficient and agile. Every deal looks different and having an approach you can tailor and experience enables you to know what to look for in targets, conduct due diligence, negotiate and know where to focus your efforts. 🧰Apply improved tools, techniques and technology to integration. By leading a specialized team focused on M&A we could effectively determine what in integration mattered, identify trouble spots, prioritize needs and make effective and informed decisions. hashtag #mergersandacquisitions #transformations #growthinhealthcare https://lnkd.in/eTB4pmit

Today, close to 70% of mergers succeed and this number is increasing, moving from a 70% failure rate in the past 20 years. Why? I wrote a series of articles on my website blog that answers this question from my experience of leading both hospital and physician group acquisitions and partnerships, including expanding a health system in CA region, growing from 350 to 800 provider network. Here are some highlights from this HBR report on successful approaches when leading M&A. 🎡Diversify and take a broader approach. Pursue deals to develop a broader geography, build new capabilities and find new sources of talent. 🔍Be sophisticated and smart about due diligence. Be the authority on the business you are acquiring. Due diligence is more than financial spreadsheets. Conduct cultural assessments to understand how these groups come together and adopt the norms and values. Assess talent and capabilities to assess what is needed post merger into integration. 📌Experience and expertise matter.  I created and led a mighty team of specialists and with every deal we took our learnings and leveraged those into the next deal. I created a repeatable model and M&A playbook and we became extremely proficient and agile.  Every deal looks different and having an approach you can tailor and experience enables you to know what to look for in targets, conduct due diligence, negotiate and know where to focus your efforts. 🧰Apply improved tools, techniques and technology to integration. By leading a specialized team focused on M&A we could effectively determine what in integration mattered, identify trouble spots, prioritize needs and make effective and informed decisions.  #mergersandacquisitions #transformations #growthinhealthcare

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Geographic expansion through acquisitions is a bold move in the manufacturing world. It's like unlocking new levels in a game—exciting yet challenging. However, the thrill of new markets comes with a cautionary tale. Without a strategic approach, it can create a fragmented organizational maze, hindering your global integration. Discover the secrets to seamless expansion and how to turn your global vision into a reality. https://bit.ly/3OhX40B #GlobalExpansion #ManufacturingGrowth #GlobalOperations #MicrosoftPartner

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📈Our goal is to empower executives to make well-informed and strategic decisions that greatly enhance the prospects of success for the individuals, organizations, and stakeholders they serve. 📊This may involve activities included, but not limited to: penetrating existing and new markets through mergers and acquisitions or Denovo expansion, engaging in real estate development including site selection and lease negotiations, evaluating office design and workflows to optimize efficiency, reduce operating costs, and enhance the experience for both patients and team members, effectively onboarding and developing associates who have the potential to become future business partners or owners, integrating specialists to establish comprehensive GP based integrated specialty practices, and other strategic initiatives required to grow. Website: https://lnkd.in/gisDw9rv Email: https://lnkd.in/gzwRgSjU #vision #solutions #strategicgrowth

Successfully managing acquisitions demands a sophisticated orchestration of strategy, communication, and meticulous planning. It is crucial to build transparency, engage with stakeholders, and maintain a clear vision throughout the acquisition process. Dealing with acquisitions doesn't needs the formulation of precise and compelling value creation propositions that underpin the entire deal-making endeavour. During the process, embrace change, but also ensure continuity by valuing the strengths of both organisations. Leading with empathy is essential, acknowledging that acquisitions often present significant challenges for both new and existing employees. By approaching these challenges with unity and synchronisation, they can be effectively reframed as opportunities for substantial growth and development. #acquisition #empathy #challenges #strength