The Acquisition Market Continues to Heat Up
Posted on Monday, December 11, 2017 2:46 PM
After last week’s announcement by CVS to acquire Aetna, to gain greater local market coverage and scale, Dignity and CHI announced an agreement to merge on December 7th. These two organizations have been in merger discussions for over a year. While the focus has been on bringing the entire continuum of services right to a patients door, it is also heating up to deal with the margin pressures associated with new payment models. The combination of these two entities will make for the largest non-for profit hospital in the United States as measured by revenue; $24.8 billion dollars with minimal overlap in hospital markets.
In its press release last week, Dignity CEO Lloyd Dean stated the following: "At the core of what we are trying to do sits the patient and consumer," Dean said. "We are looking at using our combined scale to capture the best-in-class clinical service lines and retain and attract the best talent, and look at how can we standardize our operations to improve patient experience, improve quality, reduce cost of care and use our voice to impact the direction and capacity of healthcare in this country."
Hospital systems aren’t the only ones to be eyeing consolidation. In Amedysis’ third quarter earnings call, CEO, Paul Kusserow declared that his organization will be looking towards acquiring multiple hospice organizations in the upcoming year. He is not alone, Brookdale Senior Living and Encompass Home Health and Hospice will be focused on growth in this segment as well.
To read more about this, please click here.
Corridor is the nation’s preferred partner and trusted business advisor to home health and hospice providers, providing quality services and impactful results for 30 years. Focusing on key operational, regulatory and financial challenges, Corridor delivering industry-unique solutions and deep expertise in coding, clinical documentation review, compliance, billing and collections , consulting and provider staff education . At Corridor, we make the business of caring for people Better! For the most important industry updates and news that impacts home health and hospice, please make sure to sign up for our weekly newsletter to receive the latest up-to-date industry information direct to your inbox!
For additional information, please contact Corridor at 1-866-263-3795.Go Back