Samantha Liss’ Post

The FTC's efforts in challenging healthcare industry mergers persist as Novant Health withdraws from acquiring two NC-based hospitals from Community Health Systems following an emergency injunction issued by the U.S. 4th Circuit Court of Appeals. Over the past decade, the FTC has contested 10 hospital transactions, losing only once. With the heightened regulatory focus on healthcare deals and private equity's involvement in the healthcare space, and an expected increase in hospital M&A activity, healthcare organizations eyeing transactions should stay informed. Stay connected to Crowe for ongoing monitoring in this space. #FTC #Healthcare #Mergers

Navigating the future of healthcare, hospital and health system executives must grapple with the significant impact of U.S. antitrust policies on mergers and partnerships. The recent Novant Health case highlights the challenges: a court injunction halted their acquisition of two hospitals, leading to the deal's cancellation and potential hospital closures. Despite antitrust enforcement aiming to preserve competition, it often overlooks the financial stability of struggling hospitals. As partnerships remain crucial for healthcare strategy, the tension between necessary consolidation and regulatory barriers poses a tough dilemma for the industry. #healthcare #policies #mergers #partnerships

Analyzing the Changing Landscape of Healthcare Consolidation and Post-Merger Dynamics In an era where the healthcare landscape is rapidly evolving, two pivotal articles have captured the essence of the current consolidation trends and the intricate art of successful mergers. Consolidation in the ASC Industry in 2023: The story of USPI, HCA, and Surgery Partners stands testament to the transformative power of strategic growth in the healthcare sector. This year, USPI astoundingly added 15 ASCs to its portfolio, demonstrating the organization's prowess and commitment to expanding its reach. Concurrently, Surgery Partners forged a significant collaboration with the renowned Dallas-based Methodist Health System. Not to be left behind, HCA Healthcare amplified its focus on the development of outpatient facilities. These milestones can be read in detail here. Now, why is this consolidation vital? For starters, recent statistics show that healthcare entities that leverage strategic mergers or acquisitions often witness an average growth rate of 20% within the first two years of their union. This not only boosts their market presence but also facilitates better resource allocation and patient care. The Art of Successful Mergers and Avoiding Post-Merger Blues: Mergers aren't just about combining assets; they represent a melding of values, missions, and aspirations. Decision-makers, particularly those at the helm—CEOs and CFOs—navigate complex questions. They deliberate on the potential to enhance care, reduce costs, and elevate patient convenience. They forecast how a union would position them vis-à-vis competitors and discern the unique value proposition each organization brings to the table. For a deeper dive into this intricate dance of mergers, click here. A significant piece of the merger puzzle lies in the integration of Health IT and EHR systems. It's a testament to their importance that 46% of healthcare organizations took a staggering 1-2 years to normalize workflow post-EHR implementation. This statistic underlines the criticality of not just the initial investment but the vision for long-term operational efficiency. Mergers and acquisitions in the healthcare realm aren't mere expansions; they're orchestrated maneuvers designed to foster a synergistic relationship where both entities thrive. With the industry in flux, possessing a keen insight can spell the difference between merely surviving and thriving in this competitive domain. Embracing the pillars of performance improvement, the emphasis for organizations today is not just on growing larger, but on growing smarter, better, and more resilient. #HealthcareMergers #ConsolidationTrends #ASCIndustry #HospitalAcquisitions #StrategicPartnerships #HealthcareFinancials #HealthcareTransactions #HealthcareStrategy #PostMergerIntegration #HealthcareManagement #OperationalEfficiency #HospitalManagement

Financial distress fueled more hospital M&A deals in 2023, report finds. Hospitals’ immediate financial needs drove more than a quarter of the sector’s merger and acquisition activity through 2023, which also brought a higher overall number of unveiled transactions than its predecessor, according to a new year-end dealmaking review from Kaufman Hall

"Hospital acquisitions are growing across the country, and that’s leading to higher prices for patients. Many of those deals involve private equity, which often makes cuts to certain care to drive up profits, or religious organizations that might refuse types of care that they don’t support." New Mexico legislators are taking a new approach to combat healthcare cost inflation by joining other states that give more oversight on (and ability to mitigate) the potential negative of hospital system mergers in the state. #healthcare #healthcarepricetransparency #benefits https://lnkd.in/gWDaipRd

A common trend continues. The era of the mega mergers has come to a halt the past couple of years and a doubling down into contiguous care and focused markets continues both for buyer and seller. We’re seeing major systems sell off acute and outpatient facilities that aren’t in a concentrated market and then those buyers in kind doubling down into their existing ones. It will be interesting to see what, if any, impact this has on go forward payer negotiations.

In Kaufman Hall's Q1 2024 report on #hospital and #healthsystem M&A activity, this quarter saw a significant uptick in the number of announced transactions (20), the highest first quarter number since Q1 2020. The report also highlights a number of continuing and emerging trends, including portfolio realignment, cross-market mergers, new partnership structures, community health systems seeking larger partners, and AMCs developing community hospital networks. #mergersandacquisitions #healthcaremergers #hospitalacquisitions https://lnkd.in/gGF9XMZC

"What they found: Of the 1,164 mergers of acute-care hospitals between 2002 and 2020, the Federal Trade Commission only took enforcement action against 13 of them (1%), according to the study. > However, the FTC could have flagged 238 (20%), based on the agency's own tools for screening mergers that could reduce competition and raise prices.  > Health care prices increased at least 5% as a result of hospital mergers between 2010 and 2015 that the FTC could have — but did not — flag as anticompetitive." New study on #Hospital competition and #healthcare costs covered by Maya Goldman in Axios https://lnkd.in/eRxaY_V6

"Who is buying or selling hospitals, medical and dental offices, surgical centers, rehabilitative care clinics and other health care operations around Indiana? Until now, many of the deals have been secret; but soon, Indiana officials will find out." Read the IBJ Media article by John Russell to dive deeper into how Indiana plans to keep an eye on healthcare mergers and acquisitions. https://lnkd.in/dV-qRUwn

The answer is as clear as mud. While we’re on the subject of mega mergers and impacts on patients (consumers of healthcare) let’s throw private equity deals in the mix.