The Merger Wave
One (perhaps unintended) result of healthcare reform has been an explosion of hospital mergers. In an effort to enhance care delivery efficiency and save costs, systems are merging. The American Hospital Association reported 457 hospital mergers between 2010 and 2014. In 2015, activity increased by 18% over 2014.
Consolidation is a strategy used by an organization to achieve its goals – but is it effective? Across all industries, despite high hopes by both parties, it’s not uncommon for neither to ultimately be thrilled with the outcome. By some estimates, more than 70% of mergers and acquisitions fail to achieve their strategic and financial objectives.