From Healthcarefinancenews.com: "Most hospital M&A transactions are financially unsuccessful, study says."
"According to a recent study, a majority of hospital and health system merger and acquisition transactions have not been financially successful.
"Booz & Company, a global management consulting firm, analyzed a sample of 220 hospitals with pre- and post-transaction performance data over a 10-year period (between 1998 and 2008) and found that less than half (41 percent) of all acquired hospitals outperformed their market.
"Sanjay suggested that it’s important for hospitals to merge with other hospitals that have like-minded views about the future and culture, as well as shared views around their positioning in the market.
"So, for example, a merger between an academic medical center and a small, community hospital in an underserved area may not be ideal."