The Healthcare Financial Management Association has released a report on acquisition and affiliation strategies, based on hospital and health system site visits, interviews and 145 responses to a survey sent to senior financial executive HFMA members.
The executives surveyed were asked to identify the most significant type of arrangement their organizations had pursued or were pursuing. Here are the seven most popular kinds of transaction models.
1. Acquisition by another hospital or health system, or merging into a larger hospital or health system — 26 percent of executives' organizations had pursued this model.
2. Acquiring another hospital or health system, or merging with a smaller hospital or health system — 24 percent
3. Entering into a joint operating agreement with another hospital or health system — 15 percent
4. Joining an accountable care organization or an organization similar to an ACO with another hospital or health system — 12 percent
5. Other — 9 percent
6. Entering a significant joint venture with another hospital or health system — 8 percent
7. Entering into a management services agreement with another hospital or health system — 8 percent
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6 Top Considerations Before Agreeing to an Acquisition or Affiliation
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