Many industries are being challenged and disrupted by new market forces from the democratization of information to greater price transparency as well as the explosion of the sharing economy and social media. The healthcare industry is especially being thrown into a storm of change while it moves towards member-centric models based on quality and not quantity.
Read MoreSome experts see the frantic healthcare M&A activity as a pure response to healthcare reform. However, all of this deal-making indicates a long-overdue restructuring of the industry among other highly complex factors. Health systems are trying to solve for equally powerful forces: a more precise payment setting and increasingly savvy consumers. Cohesion of business models and technologies is another major factor behind the M&A boom.
Read MoreHospitals must rethink their mission and strategy due to escalating health costs, insurer consolidation, ACA implementation and increased price sensitivity by employers and consumers. Operating margins are diminishing and pressure to keep premiums down is increasing. Therefore, increased enrollment is simply necessary stay in business and consequently the commercial insurance market is shrinking.
Read MoreDepending on who you talk to, there may or not be benefits of the new ICD-10 code implementation coming by October 1st.
Read MoreSt. Jude Medical Inc. is said to be in talks to acquire implant maker Thoratec Corporation. The maker of implants that aid failing hearts saw their stock reach an all time high today at $57.98 per share. According to Bloomberg, Thoratec Corp. is valued around $3 billion.
Consolidation in the medical device space has been rampant over the last year in an attempt to gain more bargaining power with hospitals. Neither side could be reached for comment. Stay tuned for more information regarding this potential deal.
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