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The Affiliation Option: Half Step or Future State?
HealthLeaders Media

One question plaguing hospital and health system senior executives is whether their organization has the size and the scale to effectively manage a major business disruption underway in healthcare. If it doesn’t, seeking to acquire or be acquired may once have been the only choice—but no longer.

Many organizations believe they can find the same benefits on a much quicker time frame, and with less of the political fallout that arises in hospital M&A. Earlier this year, Tenet Healthcare finally bowed out of a proposed acquisition of five hospitals in Connecticut after years of regulatory and political wrangling. With time of the essence in adapting to provisions of the Patient Protection and Affordable Care Act, as well as the commercial shifts going on simultaneously, such delays can put necessary changes on hold amid the uncertainty. Even if a merger does go through, the cultural aspects often are much trickier than the financial details involved in M&A.

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