Insurers, drugmakers and hospitals will likely slash costs and merge companies to maneuver through a U.S. health care landscape marked by rising medical expenses and the loss of millions of potential paying customers.

With Congress’ sweeping overhaul of the health system stalled, the industry will seek its own answers to a push by government and the private sector to rein in costs, said Curtis Lane, senior managing director at MTS Health Partners, a New York-based equity fund. An aging U.S. population will spur demand for services and, at the same time, boost pressure to control spending, he said.

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