M&A and Health Care
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.
|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.
|Deloitte Insights podcast: Life sciences and emerging markets
Tune into this Deloitte Insights to learn more about opportunities and risks for life
sciences companies in emerging markets.
|Deloitte Insights podcast: Health care reform - turning risk into opportunity
This podcast discusses how health care providers and health plans can prepare for
industry overhaul and M&A conversations.
|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,
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