Health systems acquiring more clinics & physician practices, less hospitals: 5 key points

United States health systems are shifting focus from hospital acquisitions to the purchase of clinics, physician practices and digital resources, according to an Accenture report.

Advertisement

Accenture researched more than 1,500 healthcare provider acquisitions between 2006 and 2015.

Here are five key points:

1. The time period saw much deal-making as healthcare companies sought to gain economics of scale, shifted to value-based care and invested in healthcare IT.

2. Acquisition volume in the first five months of 2015 proved record-breaking at $241 billion.

3. By 2018, vertical acquisitions of clinics or physician practices will hit 84 percent of the total provider acquisition volume.

4. Digital acquisitions of health companies specializing in analytics or cloud, for example, will reach 8 percent of total provider acquisition volume by 2018, up from 1 percent in 2014.

5. Traditional acquisitions of hospitals decreased to 21 percent in 2014, down from 32 percent in 2006. By 2018, these horizontal acquisitions will account for 6 percent of total provider acquisition volume.

“Rather than viewing deals as one-off opportunities, the best-prepared executives will systematically manage a potential deal as a product of the whole,” said Kristin Ficery, Accenture managing director of health provider consulting.

More articles on transactions and valuation:
Empire State ASC to open in the Bronx: 5 things to know
AmSurg receives ‘strong buy’ rating for the short term — 5 key notes
HCA receives ‘B+’ credit rating — 4 notes

At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.

Register to Attend Webinar

Is ambulatory care healthcare’s big margin engine? 4 leaders weigh in

Wednesday, July 29
1:00 PM - 2:00 PM CDT

Presenters: Joe Ganley, athenahealthJeffrey Flynn, CASC, Gramercy Surgery CenterBryan Tsao, Access Center, Loma Linda University HealthJason Zepeda, Northridge Hospital Medical Center, CommonSpirit HealthGreg DeConciliis, PA-C, CASC, Boston Out­Patient Surgical Suites

Advertisement

Next Up in ASC Transactions & Valuation Issues

Advertisement

Comments are closed.