Top 5 drivers of hospital M&A

Health insurance contract settlement improvements (18 percent).

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Ability to survive (43 percent).

For the study, BRG determined 127 health center leaders involved with transactions in the previous five years. At the time of the transactions, all of the executives were in a C-suite role, clinical management or senior executive. © Copyright ASC COMMUNICATIONS 2020.

BRG asked the healthcare facility executives what were the top 2 things most sought in the transaction. Below are the top 5 responses..

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Enhanced operating margin/stronger monetary performance (24 percent).

Capital (much better access to or lower expense) (28 percent).

Market share/volume increase (34 percent).

When asked about what was driving the merger or acquisition, the most typical response from health center executives was to elevate opportunities of survival. Some leaders stated merging with another healthcare facility would not have actually been thought about if they didnt believe closure was likely, according to the research study..

Hospitals involved in mergers and acquisitions are mainly looking for to “endure” or “stay open,” according to a research study from BRG..

For the study, BRG identified 127 health center leaders included with deals in the previous five years. At the time of the deals, all of the executives were in a C-suite function, scientific management or senior executive. Thirty-three of the executives played a key function in the deal, from initial expedition to integration..