M&A activity expected to surge as independent health systems look for partners

Elvera Bartels

Due to the fact the COVID-19 pandemic has resulted in considerable economical troubles for the health care field, lesser impartial health and fitness units will need to go after partnerships to survive, in accordance to a new report from analysts at Waller and Kaufman Hall.

A lot of the economical hardship that hospitals and health and fitness units encounter arrives from reductions in elective strategies, and by mid-June, 26.five% of healthcare facility units had employed far more than fifty% of their reserves and an additional forty one.one% of healthcare facility units had expended involving 21% and fifty% of their reserves, the report reported.

As the yr progresses, the economical long run will not look brilliant, with estimates for healthcare facility effectiveness in Q3 and This fall 2020 indicating declines in operating margins by as significantly as eleven%, in accordance to the report.

With quite a few health and fitness units

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