Adding to the whirlwind of similar healthcare deals, Cedars-Sinai Health System announced it has acquired Marina Del Rey Hospital for an undisclosed price. Marina Del Rey Hospital will operate as an affiliate of Cedars-Sinai and continue to provide its existing services, including a 24-hour emergency room and all 660 hospital employees will remain in place. The deal fits in with Cedars-Sinai's ongoing efforts to expand and make care more convenient to patients in the community.
The Affordable Care Act ushered in the biggest expansion of health coverage in nearly half a century and consequently triggered much of this merger activity. Hospitals often see consolidation as a way to spread certain fixed costs over a larger patient base and cope with reductions in federal reimbursements under Obamacare while maintaining negotiating leverage with health insurers. Across the country, many hospital systems have been opening neighborhood urgent-care centers or acquiring physician groups in order to increase outpatient revenue and help supply more referrals to the main hospital.
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