Trend: Merging Healthcare Systems on the Rise

More and more hospitals throughout the nation are merging, which could likely create giant hospitals systems, according to analysts.

The Affordable Care Act, along with a few other powerful forces, has prompted this trend, according to the New York Times. One consulting firm, Booz & Company, predicts that within the next five to seven years, 1,000 out of the nation’s roughly 5,000 hospitals could seek out mergers.

Hospitals can benefit from combining, as it can reduce costs in billing and devote more financial resources to investing in electronic medical records systems. However, federal regulators have voiced concerns that the mergers could lead to anticompetitive practices.

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