There’s also solid evidence that more concentrated health care markets are associated with lower health care quality.
While the number of deals dropped by about 21% in the first half of this year as everyone’s attention focused on COVID and the impact thereof, a number of transactions still took place. Conversely, several deals in process totaling around $23 billion were abandoned, victims of a variety of challenges.
Consolidation may actually accelerate as facilities hammered by the financial impact of COVID19 seek safe harbors.
The latest consolidation is in the north-central part of the nation, with 2 not for profit systems working on an a deal driven in large part of a desire to help the systems expand their footprint.
I’d expect more, although the increasing number of facility closures may well put a damper on deals as some run out of time.
This is particularly damaging in rural areas, where over a hundred hospitals have shut their doors over the last decade.
What does this mean for you?
There will be fewer hospitals tomorrow than today, which likely means higher prices.