In April of 2018, nearly 100 small physician groups reported an acquisition or merger from hospitals and health systems.
This trend does not seem to stop and as Alanna Moriarty for DefinitiveHC.com explains, the benefits outweigh the cons on why this trend is growing, resulting in a win for both sides. The full article can be found here, but the basic points of her post are as is:
- Small budgets to physician groups give them less freedom to improve their services/equipment/staff training, etc. The acquisition from a hospital or health systems allows for the hospital’s budget distribution to involve the physician group.
- Because physician groups are focus on one specialty, it gives hospitals an “in-house” specialist that will service their patients.
- Physician group acquisitions increase market share and reduce overall costs.
A running list of mergers and acquisitions can be found here.
DefinitiveHC – Why are Hospitals Buying Physician Groups?
AJMC – Hospital Acquisition of Independent Physician Practices Continues to Increase
Bloomberg BNA – Hospital, Physician Group Deals Dominate in April