H2C PERSPECTIVES
 
The Evolution of Healthcare Transformation: From Scale to Integration 
posted on September 6, 2018
 
 
What happens when economies of scale are not enough? We believe it likely the era of consolidation among hospitals will begin to slow as markets mature and attention shifts to the next stage of health care’s evolution.
 
 
Familiar to nearly every healthcare provider and commercial health plan is that government reimbursement rates barely cover healthcare delivery costs, if that. Also well-known is that healthcare delivery costs have been increasing at rates that exceed inflation and government reimbursement trends—and are expected to continue to do so. Compounding this trend is the influx of additional Medicaid patients in many states following implementation of the Affordable Care Act and the absolute certainty that demographic trends will result in substantial and disproportionate increases in the utilization of healthcare services by lower-paying, higher-utilizing, government-insured patients.

This puts enormous pressure on healthcare providers to better manage their costs or to cost shift to the commercially insured. Neither alternative is pleasant, nor is it easy. So, it is only reasonable that healthcare providers would try to develop mitigating strategies amidst these increasingly dire circumstances. Some of these strategies are based on the premise that technological innovation will somehow present a solution. Others assume that mergers, whether horizontal (providers acquiring providers and health plans acquiring health plans) or, more rarely, vertical (providers acquiring health plans and vice-versa), will help address this enormous problem.
 
Read more...

ABOUT HAMMOND HANLON CAMP LLC

Hammond Hanlon Camp LLC (“H2C”) is an independent strategic advisory and investment banking firm committed to providing superior advice as a trusted advisor to healthcare companies and related organizations throughout the United States.  H2C’s professionals have a long track record of success in healthcare mergers & acquisitions, capital markets, real estate, and restructuring transactions, acting as lead advisors on hundreds of transactions representing billions of dollars in value.  Hammond Hanlon Camp LLC offers securities through its wholly-owned subsidiary H2C Securities Inc., member FINRA/SIPC.  For more information, go to h2c.com.

 

MEDIA CONTACT

Kelly T. Duong
Hammond Hanlon Camp LLC
858 242 4810
kduong@h2c.com

NEW YORK

623 Fifth Avenue
29th Floor
New York, NY 10022
212.257.4500

 

ATLANTA

3333 Piedmont Road
Suite 700
Atlanta, GA 30305
404.937.1350

 

CHICAGO

311 South Wacker Drive
Suite 5425
Chicago, IL 60606
312.508.4200

 

SAN DIEGO

4655 Executive Drive

Suite 280
San Diego, CA 92121
858.242.4800