Do Not Pass Go; Do Not Collect $200
During the first quarter of 2011, $54.4 billion was spent to finance healthcare [Mergers and Acquisitions] activity, compared to $32.9 billion during the first quarter of 2010–an increase of 65 percent ….. Pharmaceutical M&A represented 24 percent of the total dollar value, at $13.5 billion, while deals involving long-term care facilities represented 23 percent, or $12.6 billion. Hospitals represented 4 percent of the total dollar amount, or just under $2 billion.
Full article on the increase in expenditures to fund healthcare acquisitions.
In the past few years hospitals have consolidated to increase their bargaining power with insurers. Hospitals are now buying physician practices and recruiting doctors to boost their share of the gain sharing from ACOs. Insurers will increasingly be concentrated among two or three dominant companies. Drug companies are acquiring other companies to stock their pipelines that are empty from patent expirations. Acquisitions appear to be the primary strategy many stakeholders think will help them survive these uncertain times.
Don’t pass Go or collect $200 but do form monopolies and drive all you competitors out of the market.
Agree. Monopoly is on its way.
John, you have it backwards. These folks are going to pass GO, collect their $200 and add lots of zeros to their $200 after that.
The rule of thumb seems to be: either merge and consolidate or die.