Hospital Consolidation: Can It Work This Time?

One of the consequences of the Affordable Care Act (ACA) is that it has sparked a giant wave of hospital consolidation: 100 deals were completed in the sector in 2014 — up 14% from the previous year, according to Wall Street research firm Irving Levin Associates.

What’s particularly notable about the recent spate of M&A is that it’s both “horizontal” and “vertical,” meaning hospitals aren’t just buying other hospitals, they’re picking up physician practices, rehabilitation facilities and other ancillary health care providers. Consider New York’s North Shore-LIJ, for example. Its aggressive M&A plan has turned it into the state’s largest employer, encompassing 18 hospitals, plus rehab centers, a medical research center, home-care services and hospice facilities. And last year it began offering health coverage through its own insurance company, CareConnect.

Wharton’s health care experts predict the trend of hospital consolidation will continue at a fast clip, particularly as health systems set up more and more Accountable Care Organizations (ACOs) in response to the ACA.

Full details: http://knowledge.wharton.upenn.edu/article/hospital-consolidation-can-it-work-this-time/

Health Systems Seen Needing New Strategies to Reorganize Delivery Models

To succeed in this new post-health reform arena, Health systems should prioritize information technology infrastructure development, information sharing, and timely distribution of information to ensure outstanding patient care, prepare for a patient-centered medical home and bundled payment system, and move toward best practice levels of care coordination, according to Health Strategies & Solutions, a Philadelphia-based consulting firm.

“The Supreme Court decision to uphold the major provisions of the ACA launches a new era in health care in the United States. Development of a robust foundation of primary care services must move to the forefront of strategic priorities for all health care providers,” the firm, with offices in a number of states, says in a white paper.

According to the firm’s white paper “Primary Care In An Era of Healthcare Reform” health care organizations that  Continue reading

Almost Half of U.S. Physicians Are on Medical Staffs of the Nation’s Healthcare Systems Hospitals

Some 439,269 physicians are members of the medical staffs of the nation’s largest hospital organizations, Managed Care Information Center research has found.

The figure represents 46 percent of the 954,000 U.S. physicians which the AMA cites as the number of doctors in the country.

Among the physicians almost 260 thousand are primary care physicians and 179,568 are specialists, found the review of the National Directory of Health Systems, Hospitals and Their Affiliates database.

The National Directory of Health Systems, Hospitals and Their Affiliates Database is researched, compiled and produced by the Managed Care Information Center.

The database focus is on the largest hospital operators in the country – the health systems.

The database provides key contact information, names, addresses and other details on the more than 750 major health systems in the United States, the almost 3500 health systems hospitals and more than 12,000 hospital system affiliated provider organizations.

We find the health system affiliates are continuing to grow in numbers.

The system affiliations includes: hospitals, medical centers, community care centers, hospices, nursing homes, ambulatory care centers, clinics, surgical centers, imaging centers, wellness and health promotion programs, and other providers of healthcare.

We believe that the list of affiliates provides sound information for sizing a market area and the health systems impact in a market area.

Information on The National Directory of Health Systems, Hospitals and Their Affiliates is found at: www.healthresourcesonline.com/managed_care/17idse.htm