Most Hospital M&A Transactions Are Financially Unsuccessful

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."

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