Report Finds More Hospitals Willing to Merge, Buy Physician Groups

More hospitals and health systems in the United States are willing to consider merging with other facilities or buying physician groups as a result of the recession, healthcare reform efforts and “thawing” credit markets, according to a report in the Sept. 7th edition of American Medical News.

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Although healthcare mergers slowed in 2008, dropping 4 percent from 2007, according to a report by Nashville, Tenn.-based HealthLeaders-InterStudy cited in the AMNews report, several well-publicized mergers, including the merger of Prince William Health System and Novant Health, have occurred in recent months. Experts expect this trend to continue and the number of mergers to begin increasing.

According to a survey by the American Hospital Association cited in the report, 9 percent of hospital CEOs are contemplating a merger, and 37 percent report increases in the number of physicians looking to sell their practices.

Experts warn, however, that announced mergers should not be considered “done deals” until they are approved by the Federal Trade Commission, according to the report. These experts expect the FTC to subject these mergers to greater scrutiny than in the past.

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