HEALTHCARE DIVE: With a significant uptick in hospital mergers and acquisitions in 2023, and average deal sizes of $591 million, regulatory bodies have stepped up their scrutiny. In an interview with Healthcare Dive, Peter Blau, Managing Partner, Global Healthcare Services & Solutions, shared what’s driving health systems to continue to seek mergers and acquisitions:
“They’re having difficulty recruiting staff, both clinical and nonclinical executives. They are experiencing reimbursement challenges,” Blau said. “So for a lot of these facilities, it’s a very challenging time. It’s very attractive for them to go out and find partners that will allow them to continue to exist and serve the community.”
Faced with staffing and reimbursement challenges, mergers and acquisitions remain a strategic move for many healthcare providers, enabling them to continue serving their communities effectively. The renewed regulatory efforts underscore the need for a balanced approach that fosters growth while ensuring fair competition and market health.