January 21, 2016

4 Ways Mergers Are Beneficial to the Healthcare Market

What are two words you’ve gotten used to hearing? If you answered “healthcare reform,” you aren’t alone.

The industry climate has been changing for years now, and there’s no denying that we’re in the thick of things as we speak. And as the industry is changing, so are its organizations, causing many hospitals to merge and many physicians to seek these merger opportunities.

The industry is more competitive than ever, and although mergers can certainly deliver their own variety of stress and added expense, they can also be incredibly beneficial.

Here are four examples of the ways in which hospital mergers are beneficial to the healthcare market:

  • For one, mergers can help smaller, not-for-profit organizations survive. By merging with a larger hospital, these organizations can avoid some financial stress, as well as the stress that comes with reducing services. Mergers can be fortifying for many of these struggling, smaller organizations.
  • Mergers are allowing organizations to better position themselves in the new healthcare model. The model is changing and evolving, and ideas and processes are more innovative than ever; merging allows organizations to test these innovations in a way that is also cost-effective.
  • For patients, hospital mergers expand the services available to them.
  • Lastly, merging can bolster an organization’s relationship with its community, combining charities and other methods to meet community needs.

There’s no doubt about it. Mergers, acquisitions and joint ventures are becoming more and more common in the United States hospital system. In the event of a merger, does your organization have a plan in place? Share your thoughts with us on LinkedIn!

COORS’ Physician Resources offer a customized, comprehensive approach that delivers strategic solutions to communities, physicians, hospitals & health systems. Each component of the COORS system builds the foundation for the next to create true physician-hospital alignment.



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