In recent years there has been an increase in the number of business combination transactions in the health-care industry. In 2011 alone, there were 86 hospital mergers and acquisitions, the highest ever in the last decade. These transactions can take many different forms, from mergers, sales of assets or stock, to affiliations and other strategic transactions. Many of these transactions are driven in part by changes in reimbursement and new delivery-of-care models spurred by health reform. Health-care providers considering a transfer of ownership must understand that it can be a complicated process triggering various state and federal regulatory approvals.
Even before the Supreme Court’s decision upholding the Patient Protection and Affordable Care Act, hospitals and other health-care providers have been exploring consolidation and integration strategies as health-care reimbursement increasingly moves from fee-for-service to value-based purchasing, bundled payments and other various pay-for-performance mechanisms.
