Top 10 Health Law Issues 2015: Health Care Mergers and Acquisitions

AHLA Connections February 2015

Gary W. Herschman, Anjana D. Patel, and Victoria A. Vaskov, attorneys based in our Newark office, authored an article, "Health Care Mergers and Acquisitions," as part of AHLA Connections' "Top 10 Health Law Issues 2015" feature.

Following is an excerpt:

2014 saw an unprecedented surge in health care mergers, acquisitions, affiliations, and other consolidation transactions, and there appears to be no sign of any slow-down in the year ahead. The recent surge in these transactions has been driven primarily by implementation of new initiatives and changes in health care delivery and reimbursement as a result of the ACA.

The ACA-based initiatives are causing providers to strategically alter their operations to best position themselves in the changing marketplace to, among other things: effectively manage the health of large populations, enhance physician alignment and integration, implement clinical quality/performance-based programs, assume and manage greater risk, enhance information technology and data analytic capabilities, and develop strategies to reduce costs (without jeopardizing quality). Larger systems have greater access to the significant capital necessary to achieve these objectives and to benefit from economies of scale.