Chapter 19, “Hospital Mergers, Acquisitions and Consolidations and the Associated Risks,” in AHLA Enterprise Risk Management for Health Care Entities

AHLA Enterprise Risk Management for Health Care Entities January 2017

Anjana D. Patel, a Member of the Firm in the Health Care and Life Sciences and Litigation practices, in firm’s the Newark and New York offices, authored a chapter in AHLA Enterprise Risk Management for Health Care Entities, titled “Hospital Mergers, Acquisitions and Consolidations and the Associated Risks.”

Following is an excerpt:

Since the passage of the Affordable Care Act (ACA), mergers, acquisitions and consolidation transactions (hereinafter, "consolidation transactions") in the health care industry have been on the rise and this upward trend is showing little signs of slowing down for many reasons.… One reason is the focus in this post-ACA era of shifting the delivery of care from an inpatient to an outpatient basis and emphasizing preventative care which 'has led to a decline in hospital revenues, while at the same time the costs of doing business have risen due to an increasingly complex regulatory scheme and more government enforcement.