A hospital acquisition is the purchase of a hospital by another facility or multi- hospital system.

A hospital acquisition is the purchase of a hospital by another facility or multi- hospital system.
IntroductIon The number of US hospitals operating as part of a health system grew from 2,542 in 2000 to 2,868 in 2008 and to 3,144 in 2014—a 24 percent increase since the year 2000 (AHA 2015). In addition, 55 percent of all US hospitals now are part of a health system. These data indicate that the majority of strategic planners in the healthcare field must consider not just the individual hospital but the overall health system in which the hospital oper- ates. Likewise, independently operated US hospitals, which are now in the minority, must consider future health system affiliation as part of their long-term survival plan.
In 2015, almost 90 percent of US hospitals were considering a merger or an acqui- sition (LeMaster and Aygun 2015). Hospital mergers and acquisitions had reached their highest levels in more than 15 years, and hospital consolidations amounted to more than 130 mergers or acquisitions annually.
Declining reimbursement and provider competition are driving this trend. Many medical groups are joining with hospitals to form affiliations, confederations, or shared economic models such as integrated delivery systems (IDSs). IDSs enable better use of staff and financial resources and can lead to greater operational efficiencies across the continuum of healthcare services. They may also gain a competitive advantage by negotiat- ing better reimbursement rates with insurers. Furthermore, IDSs bring together a wider array of clinical services and deliver them in a more coordinated manner than fragmented hospitals can. This chapter discusses the important role health systems have in positioning an organization in an environment of growing uncertainty.
HospItal mergers and acQuIsItIons In the 1990s, healthcare was characterized by the restructuring of hospitals, medical groups, and long-term care providers. These restructuring initiatives included the development of IDSs formed by a combination of acquisitions, mergers, joint ventures, and other alliances.
A hospital acquisition is the purchase of a hospital by another facility or multi- hospital system.
The number of hospitals has only marginally increased since 1999—up less than 1 percent. However, the number of hospitals affiliated with a system has increased 16

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