August 17, 2011
I think we’re all dizzy after watching the stock market this past week. Way down. Way up. Way down. And so it goes…
But, while the market may be stuck on a rail of extreme changeableness, you can’t say that about mergers in the health and human service sector. There has only been a single direction for the past year, and that is up. As we reported last week, mergers and acquisitions in the health and human service sector were up 44% in the second quarter of 2011 from the first quarter and up 61% from this same quarter in 2010 ($73 Billion in U.S. Health Care Mergers & Acquisitions in the Second Quarter of 2011; Up 44% Over First Quarter ).
We’ve covered many of these deals over the past six months – and you may want to revisit these new business combinations to determine what, if anything, they mean for your future strategy:
Both public health insurance plans and employer health plans are pushing cuts to both consumers and provider organizations through increased cost sharing and decreased payment rates, respectively. And on the social services side of the equation, public purchasers want more for less in child welfare, juvenile justice, disability support services, and education. The net effect is competitive advantage to the lean and the large – a perfect storm for more business combinations. We will keep you posted!
Monica E. Oss
Chief Executive Officer, OPEN MINDS
To read more on mergers and acquisitions, see: Should Your Organization Explore Mergers & Acquisitions? all members