As financial pressures mount and adjacent markets become saturated and/or highly regulated, a growing number of health systems are rethinking the geographic boundaries of traditional mergers and acquisitions — sparking renewed debate over the strategic value of noncontiguous transactions. While some leaders argue that expansion beyond a system’s immediate footprint dilutes cultural cohesion and operational synergies, others see opportunity: greater scale, diversified risk, and expanded access to capital and talent. So what would it take to compel a health system to pursue a merger or acquisition with a geographically distant partner? Will noncontiguous M&As become more common — or remain the exception? Seven health system leaders shared their perspectives with Becker’s.
Read the full article: Why Some Systems Say ‘Yes’ to Distant M&As — and Others Say ‘Never’ //
Source: https://www.beckershospitalreview.com/finance/why-some-systems-say-yes-to-distant-mas-and-others-say-never/