Study: Positive outcomes associated with mergers and acquisitions

New research released today by the Deloitte Center for Health Solutions and Healthcare Financial Management Association offers key strategies for achieving successful mergers or affiliations. The study of hospital acquisitions between 2008 and 2014 found that nearly 80% of the acquiring organizations made significant capital investments in the acquired facilities soon after the transaction, and nearly 40% used the capital to upgrade or implement clinical information systems, the top-reported use of capital. Among other findings, more than half of the financial executives surveyed said at least one aspect of care quality improved after an acquisition. According to an AHA-commissioned study last year by Charles River Associates, hospital mergers between 2009 and 2014 reduced annual operating expenses at acquired hospitals by 2.5%, equating to $5.8 million, and are driving quality improvements and upgrades to the facilities and services.