The trend of medical firms consolidating to form large groups is only continuing to grow.
According to Chicago Business, “Advocate Health Care, [Illinois’] largest system, and NorthShore University HealthSystem, the dominant health network in Chicago's northern suburbs, announced today they will merge to form a 16-hospital system to be called Advocate NorthShore Health Partners.” This new organization is expected to “generate at least $6.5 billion in revenue and $400 million in operating income.”
Chicago Business states this merger will allow the organization to “build geographic reach and financial brawn in an industry beset by increasingly stingy insurers and steeply rising operating expenses. Being bigger helps health systems command more favorable reimbursement rates from payers and lower per-patient costs through economies of scale.”
Physicians should be aware of what to do if their practice were to be acquired by a larger group.
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