Scrutiny on nonprofit health system mergers and acquisitions is intensifying and Moody’s warned it could become a tougher exit strategy for distressed hospitals, and affect growth of large systems, according to an April 18 2024 Healthcare Quarterly report. While planned mergers, acquisitions, and joint operating agreements will likely continue to increase, Moody’s cautioned that scrutiny from federal and state regulators has become a costly risk for even cross-market deals. “On the regulatory front, not-for-profit cross-market mergers have generally not led to the same degree of scrutiny as combinations in a single market,” the report notes. “That scrutiny is intensifying as federal and state regulators increasingly have antitrust concerns and seek to control healthcare costs.”
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Source: https://www.beckershospitalreview.com/finance/large-health-systems-may-need-to-rethink-growth-moodys.html