Growth of healthcare organizations – from either consolidation or increased output and revenues – continues to trend upward in the industry, thanks to drivers such as federal mandates, market competition, tighter margins and the increasing need to do more with less.
On the consolidation side, in a 2013 survey conducted by the Healthcare Financial Services division of GE Capital, 88 percent of 233 senior healthcare services executives reported that they expect to pursue M&A activity in the next 12 months. And Hammond Hanlon Camp’s November 2013 report, Merger and Acquisition Trends in Healthcare, forecast the M&A outlook for healthcare to remain strong into 2014 as a result of favorable capital markets, additional clarity around the health reform law and continued need for clinical integration and cost control as new value-based care models are implemented.