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Top Health Systems: Mergers, Acquisitions, Affiliations

October 3, 2017 BY Alanna Moriarty

Top Health Systems: Mergers, Acquisitions, Affiliations

Care center mergers and acquisitions are key indications of which health systems are thriving and which are falling behind. The consolidation, purchase, or sale of a care center can aid in lowering costs, increasing patient satisfaction, and expanding the number of services a provider can offer. In 2017 alone, Definitive Healthcare tracked more than 300 mergers and acquisitions.

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The Pivotal Role of Healthcare IDNs in Purchasing and Population Health

The Centers for Medicare and Medicaid Servces (CMS) is putting increasing pressure on healthcare providers to deliver high-quality care to patients at the lowest possible cost while simultaneously reducing preventable readmissions. Some care providers have joined accountable care organizations (ACOs) to meet these expectations. However, though ACOs are capable of providing coordinated, timely care, they have limitations as a group of individual providers, care centers, and health plans.

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Healthcare consolidation has become one of the most noticeable trends of the post-reform period. A combination of poor economic growth, state budget pressures, and declining reimbursement has encouraged many health organizations to pursue mergers as a means to cut costs and expand their market presence. Much of the public scrutiny has focused on hospitals, health systems, and major insurers, but consolidation among private practices has grown as well over the past several years. From 2013 to 2015, a study found the mean and median physician practice group size grew from 3.8 and 8 to 4 and 10, respectively, while the percent of physicians in groups with more than 100 doctors increased from 29.6 to 35.1 percent. Evidence suggests that physician practice mergers and vertical integration with hospitals can potentially have the same anticompetitive effects as hospital-level agreements, but typically encounter fewer regulatory obstacles.

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Why 2015 was the best year yet for Medicare ACOs

September 6, 2016 BY Definitive Healthcare

CMS just released the 2015 results of its Pioneer and MSSP ACOs, and once again, the picture looks nearly the same as in previous years: around a third of all participants excelled and earned shared savings, while close to half weren’t as lucky and surpassed their spending benchmarks. But behind the raw financial results are new signs that the program is successfully urging providers to develop more quality-driven and cost-effective models of care.

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