A new report found that, in terms of transacted revenue, 2022 was the biggest year on record for hospital mergers and acquisitions.
53 deals were completed that resulted in a total combined revenue of $45 billion.
The $45 billion figure is even more daunting when you consider that 2022 also saw the second fewest transactions in a decade.
What this suggests is that hospital consolidation could be moving away from major health systems buying up small, independent practices.
Reports show those have mostly been acquired.
Instead, we could now be entering the world of Mega Mergers.
Big health systems are being bought up by huge conglomerates.
For consumers, this is not good news.
Fewer options means less competition.
Less competition means higher prices and worse care.
According to the Federal Trade Commission, “Too many hospital mergers lead to jacked up prices and diminished care for patients most in need.”
It was bad when the billion-dollar hospital systems were buying up the little guys.
But if we continue unchecked down the Mega Merger path, we could be looking at an all-new affordability crisis.