The Supreme Court's June ruling on the healthcare reform law and recent presidential election may have slowed transactions between hospitals and physician practices, but experts say activity is likely to pick up again, according to an American Medical News report.
In the third quarter of 2012, eight physician groups merged or were acquired — a 62 percent drop from the 21 deals in the second quarter and 71 percent drop from the 28 deals in the third quarter of 2011, according to data from Irving Levin.
Experts pointed to a few reasons for the slowdown aside from the uncertainty around the Supreme Court decision and a repeal of the Patient Protection and Affordable Care Act. One factor is the size of physician practices involved in the M&A. As they grow larger, transactions can take longer. Also, mergers and acquisitions are generally attracting more regulatory scrutiny, according to the report.
Since Irving Levin only tracks publicly announced transactions involving large organizations, mergers and acquisitions involving small practices may have remained unaffected.
Number of Independent Physicians Expected to Drop to 36% by Year's End
3 Insights Into the Future of Hospital-Physician Relationships
In the third quarter of 2012, eight physician groups merged or were acquired — a 62 percent drop from the 21 deals in the second quarter and 71 percent drop from the 28 deals in the third quarter of 2011, according to data from Irving Levin.
Experts pointed to a few reasons for the slowdown aside from the uncertainty around the Supreme Court decision and a repeal of the Patient Protection and Affordable Care Act. One factor is the size of physician practices involved in the M&A. As they grow larger, transactions can take longer. Also, mergers and acquisitions are generally attracting more regulatory scrutiny, according to the report.
Since Irving Levin only tracks publicly announced transactions involving large organizations, mergers and acquisitions involving small practices may have remained unaffected.
More Articles on Hospitals and Physician Integration:
5 Lessons Learned From a Clinical Integration ExpertNumber of Independent Physicians Expected to Drop to 36% by Year's End
3 Insights Into the Future of Hospital-Physician Relationships