News

The latest on managing care, value-based care, insurance markets, payers & providers

Health care mergers and acquisitions decline in 1998











While mergers and acquisitions in health care slowed last year, such activity in 1998 was still brisk — it was the second-most-volatile year of the decade. Significant increases occurred in the number of dental and medical-specialty practices and institutional pharmacies that traded hands. HMOs are merging steadily, largely because of the industry's realization that it must now generate profits from economies of scale and increased clout, rather than demand further provider discounts. Transactions involving home health care companies, hospitals, and labs dropped off significantly.

Primary care and multispecialty practice sales dropped significantly from 1997 to 1998, while activity involving single-specialty practice management companies picked up; in these cases, pediatric, neonatology, and perinatology practices were most frequently acquired.

SOURCE: HEALTH CARE MERGER & ACQUISITION YEAR IN REVIEW, IRVING LEVIN ASSOCIATES, NEW CANAAN, CONN., 1999

Subscribe to Our Newsletters

Monthly table of contents

Be notified as each issue of Managed Care is available online.

Biweekly newsletter

Recent topics have included:

  • Doug Jones and the ACA, Epic misses a White House meeting, and man caves for man-flu sufferers
  • CVS-Aetna deal may trigger merger mania, Johns Hopkins criticized for lack of asthma prevention, & Columbia sees free-ride future for all of its med students

PTCommunity news

New drug approvals, clinical trials, drug management. Three times per week.