America’s health care industry is undergoing rampant consolidation. The enactment of the Affordable Care Act sparked a merger frenzy that continues today. Experts see consolidation as fundamental to reducing costs — by integrating care coordination and delivery and by increasing scale to drive efficiencies, including with shared savings and relationships with payers and vendors. Indeed, Booz & Company has predicted that of the nation’s 5,000 hospital systems, at least 1,000 will merge or consolidate in the next five years.
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