Multiple large health systems in the U.S. underwent a market reorganization in the last year by expanding their reach and formalizing leadership structures for resource optimization.
St. Louis-based Ascension, Chicago-based CommonSpirit Health, Altamonte Springs, Fla.-based AdventHealth, West Des Moines, Iowa-based UnityPoint Health and more announced systemwide restructuring recently to appoint more divisional leaders funneling up into the corporate CEO. And more will likely follow in the next year, predicts Anu Singh, managing director and practice leader of partnerships, mergers and acquisitions at Kaufman Hall.
In a Jan. 17 report, Mr. Singh noted the large system reorganizations and pointed out regional strongholds like St. Louis-based BJC HealthCare and Froedtert Health have made acquisitions that expanded their regional footprint.
"Although cross-market mergers gain significant attention in 2023, we expect many health systems to focus on development of regional markets or, for larger national systems, the development of key regions within their portfolios," Mr. Singh wrote. "A key consideration will be balancing the advantages of scale with the ability to respond with agility to regional issues and opportunities."