Hospitals and health systems are pursuing loosely integrated partnerships instead of formal mergers and acquisitions, according to Kaufman Hall's "Healthcare Merger & Acquisition Activity Report: Q1 2019."
Looser partnerships enable organizations to maintain their independence while expanding their reach, the report said. These kinds of partnerships include management service agreements, minority investment models and joint ventures.
For instance, more hospitals are opening ASCs through physician partnerships to offer a lower-cost alternative and capture physician loyalty, according to Sioux Falls, S.D.-based Surgical Management Professionals CEO Michael Lipomi.
Thirteen of SMP's centers involve partnerships between physicians and hospitals.
"We're finding two things: A lot of docs are moving forward with surgery centers, and hospitals are using surgery centers to expand their footprint," he said.