The Promises and Perils of Hospital Mergers

Abstract

Over the course of several decades, mergers have been regular occurrences within the business sector. Since healthcare is an industry, it is common knowledge that hospitals – for better or worse – have not been immune from this business-driven phenomenon. Utilizing select sources from both the management and financial literature, this paper will briefly examine how and why hospital mergers have occurred and changed, how they have achieved or failed their intended purposes, and some of the potential obstacles that may surface in existing and future healthcare consolidations that include hospitals and other provider groups. Consequently, solid evidence must be made available to prove that current and future mergers deliver what they promise – namely, clear communications, quality care outcomes, and reduced costs.