Anxiety is rippling through the healthcare industry as the initial reporting period for Medicare’s new payment system for physicians fast approaches. Modern Healthcare’s latest CEO Power Panel survey reveals leaders are bracing for uncertainties and challenges generated by the law, formally titled the Medicare Access and CHIP Reauthorization Act.
Tag Archives: Health System
Why the Lahey-Beth Israel merger has failed three times

Why have 2 Boston hospitals failed to merge — 3 times?
Burlington, Mass.-based Lahey Health and Boston-based Beth Israel Deaconess have attempted to join forces numerous times, but to no avail.
They tried to merge in 2011. They took another stab at it when they teamed up with Newton, Mass.-based Atrius Health in 2012. Merger talks were once again sparked earlier this year, only to fall through in September.
Despite the effort, the health systems can’t seem to pull it together and unite. But their attempts at merging show more than a lack of a solid relationship — they provide a deeper look at the background of healthcare in Massachusetts and the power of market share.
What 4 health system CEOs think of hospital consolidation
There is a great deal of consolidation occurring in the healthcare industry today, and whether that is good or bad news to health system CEOs depends on their organization’s market and M&A track record.
During a panel discussion at the Becker’s Hospital Review 4th Annual CEO Roundtable + CFO/CIO Roundtable in Chicago, Chuck Lauer, former publisher of Modern Healthcare, asked the speakers to offer their thoughts on provider consolidation.
Here’s how CEOs responded.
The rise of ‘super regional systems’ and what it means for healthcare
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Consolidation has touched all facets of healthcare, including hospitals of all sizes, medical groups and insurers, and this trend will significantly affect the industry as a whole.
Mergers, acquisitions and other types of partnerships are critical as hospitals focus on providing coordinated, cost-effective care. There has been an increase in hospital M&A in recent years, with transactions rising 18 percent in 2015 compared to the year prior, according to an analysis by Kaufman, Hall & Associates.
Through consolidation, hospitals become more efficient and, many times, improve care quality. However, consolidation also increases leverage and causes revenue to rise. This has led to the creation of “super regional systems,” says Gregory F. Hagood, senior managing director and president of SOLIC Capital. This trend is noted in almost every major market, but it is most visible in metro areas like Chicago.
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42 hospital transactions and partnerships in August 2016

The following hospital mergers, acquisitions and general transactions took place or were announced in August.
St. Vincent General Hospital, Centura Health to build new hospital

As part of a management agreement, Leadville, Colo.-based St. Vincent General Hospital and Englewood, Colo.-based Centura Health, will jointly plan, develop and build a healthcare facility in Lake County, Colo.
Under the management agreement, St. Vincent General Hospital, a 25-bed critical access hospital, is integrating with operations at Centura Health. The construction of the Lake County hospital is part of an expansion of that agreement.
Additionally, under the expanded agreement:
- Centura Health will provide a strategic plan to improve clinical quality and patient care at St. Vincent General Hospital, including proposals in medical services, facilities and health IT.
- The District Board of Directors will continue to serve as the hospital’s governing body.
- St. Vincent General Hospital will be managed by the leadership of St. Anthony Summit Medical Center in Frisco, Colo., part of Centura Health.





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