Why hospital mergers are destined to fail

Pretty interesting article making the case that hospital mergers are destined to fail. Thanks to a loyal NAW reader for submitting this article!

Dr. Robert Pearl states “As health plans, pharmaceutical companies and new care-delivery entrants gain market clout at the expense of the hospital industry, panic is starting to set in. These developments have spurred a recent uptick in hospital mergers, which look more like deals of desperation than long-term growth strategies.”

He further makes the case that the 2 main premises M&A is built on: reduction of duplication and to increase clout are not at the core of why these mega mergers are occurring. Simply put he eludes that the intestinal fortitude is not in the leaderships DNA to actually eliminate redundancies and cost, rather just focused on a better market position to increase revenue.

It’s a fascinating read, I’d love to hear your thoughts.

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