M&A and Health Care

Industry advantage

Hospitals, pharmacies and insurance companies are looking to acquisitions as a strategic investment in order to increase access to healthcare, reduce costs and improve quality. The improving economy, stability in asset prices, increase in lending activities and resource requirements to comply with new legislation make mergers and acquisitions an attractive proposition in health care sector.

Health reform increases health insurance access to more than 30 million Americans, giving new revenue generation opportunities to hospitals. To capture these opportunities, hospitals are looking for consolidation to build infrastructure, get access to new technologies and increase their market share. On the other hand, health insurance companies will look for solutions to absorb additional cost generated from health reform. Acquisitions can be one of the solutions for large insurers to achieve their growth strategies and meet new legislation provisions. Consolidation with mid-sized insurance firms with a strong balance sheet can help these larger insurers achieve operational excellence and economies of scale.

Below we have provided resources and materials that provide insights on M&A activities in health care sector.

Featured content

M&A trends in life sciences and health care: Insights on growth at the global intersection of change
Survey results featuring insights on current M&A trends from the perspective of senior-level life sciences and health care executives.
Going vertical: Post-acute care as an opportunity for growth
Faced with narrower revenue streams, greater pressure for coordinated care, and more uncertain payment systems, hospitals may need a new strategy to survive and grow. This report probes the viability of post-acute care and a path forward for hospitals.
Deloitte Dash on-demand: Hospital consolidation: Analysis of acute sector M&A activity
Our latest Dash webcast discusses findings from a recent Deloitte Center for Health Solutions study that measures the value gained in recent M&A activity among hospitals. Tune in to learn more.
Physician-hospital employment: This time it’s different
Hospitals have been employing physicians at increasing rates, driven mainly by broader health care system transformation. Earlier waves of physician-hospital consolidation ended, for many, with divesture. This time hospitals cannot afford to fail.
Hospital consolidation: Analysis of acute sector M&A activity
How well did studied hospitals perform financially post-merger? Deloitte analyzed 101 acute hospital sector M&A transactions in 2007-2008 and discovered mixed results.

Unlocking value in health plan M&A: Sometimes the deals don’t deliver
Deloitte’s analysis of 44 health plan merger and acquisition (M&A) transactions found that fewer than half led to sustained improvements in comparative market value three years after the deal closed.

Test Tubes Health plans and providers: M&A transactions in a post-reform environment 
This article outlines the risks and opportunities of doing deals in today's complex, post-reform environment.

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