With Flurry Of Mergers, Hospitals Are Building Muscle, But They Face Uphill Battle In Industry
Mergers can only accomplish so much for struggling hospitals in the ever-evolving landscape that is the health industry these days.
Hospitals Are Merging To Face Off With Insurers
A spate of hospital deals stands to further remake the U.S. health-care landscape, pushing up prices for consumers and insurers and changing how individuals get care. Just this month, health systems with at least 166 hospitals and $39 billion in combined annual revenue have announced merger plans. There’s likely more to come: The Wall Street Journal reported on Sunday that Ascension and Providence St. Joseph Health, a pair of nonprofits that together have 191 hospitals and nearly $45 billion in annual revenue, are in deal talks. (Tracer, 12/11)
The Wall Street Journal:
Despite Mergers, Hospitals Are In Serious Condition
American hospitals have a target on their backs. The latest merger talk is an attempt to rally their strength, but industry payers’ battle against high health-care costs shows no sign of letting up. Two major nonprofit hospital chains, Ascension and Providence St. Joseph Health, are in talks to combine, the Wall Street Journal reported on Sunday. A deal would create a chain of 191 hospitals in 27 states with annual revenue of about $45 billion. (Grant, 12/11)