Consolidating Provider Landscape

The demand for improved health care value is becoming a driving force for consolidation of the provider market.

Pooling medical specialties and aggregating similar treatments can help providers offer higher-quality care to patients and improve outcomes. Streamlining and consolidating hospital services helps providers focus on a narrower range of things they do well and deploy scarce capital more effectively.

Some organizations will need to consider mergers and acquisitions, while others must reconfigure clinics to better serve local demand for patient services, or improve outcome per dollar spent for strategically prioritized patient groups. Once opportunities for transformation have been identified, providers need to ensure that changes are delivered smoothly, without disruption of service.

Hospital Service Consolidation

The consolidation of hospital services is being driven by a variety of competing factors.

The factors driving consolidation include:

  • Viable Volumes. Driven by service levels and minimum team sizes
  • Global Best Practice Comparisons. Benchmarked to international peers
  • Statistically Significant Data Set. To measure outcomes and identify concerns

The factors limiting consolidation include:

  • Access Requirements.
  • Capacity Constraints. Limiting volume per center without major capital investment
  • Competitive Constraints. Minimum number of providers required to maintain professional competition
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