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Considerations for Acquiring or Affiliating with Another Hospital

First few Article Sentences

The economic downturn and resulting restricted access to capital have caused many hospitals to consider a partner or other affiliation strategy. Declining volumes and the deteriorating payer mix are further forcing these discussions – as are the seemingly countless opportunities for capital-rich hospitals to acquire struggling, undervalued hospitals.

Recent healthcare reforms may have a further impact on hospital affiliation. In fact, a recent Moody’s report predicts that “as governmental auditing and oversight of revenue are tightened, hospitals will be pressured to operate more efficiently, forcing spending cuts and mergers among smaller hospitals after 2014.” Affiliating or acquiring may be the right thing to do, but before taking such a step, there are some considerations for both parties.

Hahn, Tanya, K.


Lancaster Pollard

Mergers & Acquisitions

October 21, 2010

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