Perspectives

Health Care Current Library

This weekly series explores breaking news and developments in the U.S. health care industry, examines key issues facing life sciences and health care companies and provides updates and insights on policy, regulatory and legislative changes. 

Perspectives

Health Care Blog

Read the Center for Health Solutions blog - sharing timely insights, research and forward thinking for the Life Sciences & Health Care Industry.

Analysis

Hospital consolidation: analysis of acute sector M&A activity

Deloitte study reveals mixed results

Consolidation in the acute sector is accelerating as hospitals seek sustainability amid increasing stress from margin pressures, regulatory compliance costs, public transparency responsibilities, operational integration in value-based delivery systems, payment reforms, and clinical improvements based on new diagnostic and therapeutic models.

Analysis of acute sector M&A activity

How well do acquired hospitals perform financially post-merger? Do hospitals acquired by national chains outperform local/regional “in market” acquisitions? How does the performance of acquired hospitals compare to a peer group (same size) and acute hospitals?

The Deloitte Center for Health Solutions analyzed 101 hospital transactions in 2007-2008, using three measures to analyze the performance of the acquired hospital pre-merger and up to three years post-merger. The study reveals:

  • The financial performance for acquired hospitals improved, but did not achieve peer group medians.
  • The financial performance of hospitals acquired by national chains outperformed local/regional acquisitions as a result of lower operating costs and increased volume comparatively.

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Services

About the Deloitte Center for Health Solutions

About the Deloitte Center for Health Solutions: The source for health care insights.

Services

Merger & acquisitions strategy

Discover new approaches and innovative strategies to vertical integration and broad M&A services  to help capture competitive and cost advantages.

People

Sarah Thomas

Director of Research | Center for Health Solutions

People

Harry Greenspun, MD

Director | Center for Health Solutions

Dbriefs Webcast

Health Sciences

Anticipating tomorrow’s complex issues and new strategies is a challenge. Reach new heights with Dbriefs—live webcasts that give you valuable insights on important developments affecting your business.Dbriefs offers live webcasts featuring practical knowledge from Deloitte specialists.