Anjana D. Patel, Member of the Firm in the Health Care & Life Sciences and Litigation practices, in firm’s the Newark and New York offices, and Zachary Taylor, Summer Associate, co-authored an article in BoardRoom Press, titled “Understanding and Navigating Healthcare M&A in the New World of Disruptors.”

Following is an excerpt:

The healthcare industry is facing an unprecedented increase in merger and acquisition (M&A) activity. Traditionally, these transactions involved provider-to-provider deals, such as hospitals and health systems merging or hospitals acquiring physician practices, nursing homes, home health companies, etc. More recently, however, there has been an increasing trend of new organiza­tions entering the industry creating new M&A models with a potential to significantly disrupt the industry. These new entrants consist of payers, retail­ers, pharmacies, IT companies, private equity funds, and large employers, and they are engaging in transactions not only amongst themselves, but also with providers. The actual impact of these activities on hospitals remains uncertain, but what is obvious is that the old way of doing business is rapidly changing. Hospitals and health systems need to understand, anticipate, and proactively react by creating business strategies to effectively compete in the industry.

Disruptors are entrepreneurial, innovative, and financially secure. They possess the ability to amass and analyze huge amounts of financial, clinical, and consumer data, as well as impact how and where healthcare products and ser­vices are utilized. Disruptors are invest­ing in companies that keep costs down by owning more of the supply chain, or they are employers looking to limit their costs and cut out the payer middleman by engaging in such strategies as direct contracting with providers. Like other industries, such as retail, disruptors are focused on the patient as a consumer. They understand that in order to truly meet the demands of a consumer, they will need to employ new strategies and technologies.

Jump to Page

Privacy Preference Center

When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.

Strictly Necessary Cookies

These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.

Performance Cookies

These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.