The merger trend among U.S. not-for-profit health care providers is in full swing, with some health systems doing not one but multiple acquisitions, and others likely to continue their search for partners or unique affiliations, Standard & Poor's Ratings Services said in a report released Tuesday.
"We expect further consolidation as the industry responds to the pressures of competition and health care reform," said Standard & Poor's credit analyst Kevin Holloran.
Overall, merger activity has been positive for the credit spectrum. Many organizations that would otherwise have spiraled down the credit scale were upgraded or had their ratings withdrawn following a merger with a bigger and more-financially robust entity, according to the article, "U.S. Not-For-Profit Health Care: Competition And Reform Continue To Spur Mergers".
While typical hospital-to-hospital mergers continue at a rapid pace, there is also an increasing number of unique affiliations across the traditional health care silos that are designed to access different data sets, revenue streams, management skills, actuarial expertise, clinical services, and philosophies of care.
