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Hospital consolidations rise due to continuing pressures

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Hospital consolidation is “the gift that keeps on giving for consultants,” according to Anne McGeorge, national managing partner of Grant Thornton LLP’s Health Care practice.

“It is being driven by costs and capital spending requirements (especially for information technology),” she said.

McGeorge spoke as a panelist in the May 2014 Healthcare Dealmakers Conference in Dallas. She and other panelists were in agreement that the pressures of reimbursement changes and the drive to value-based care models will continue to prompt hospital consolidations.

Bankruptcies and turnarounds are plaguing hospitals and health systems, which has fueled growth in Grant Thornton’s Health Care practice, McGeorge reported.

Read the common causes of failures named by McGeorge, as well as further insights in “Experts Urge More Caution in Hospital Consolidation,” the May 21, 2014, article in Healthcare Daily by Steven Jacobs.