Advisory Board: Hospitals Are Struggling. Are Mergers the Answer?

As hospitals’ financial difficulties grow, some, especially independent hospitals or small regional systems, are seeking out mergers with larger health systems to help them fund much-needed infrastructure improvements and service expansions and keep up with rising expenses. “Many smaller hospitals lack the capital to put the right technology in place, let alone expand service lines,” said Brad Boyd, management consulting principal at consultancy BDO. “They need these transactions to remain competitive.” At the same time, state regulators have become more stringent in their reviews of healthcare mergers, with several states passing new laws that broaden regulators’ oversight authority and the number of deals they review.

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Source: https://www.advisory.com/daily-briefing/2026/07/28/mergers-oi-ec

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