BURLINGTON, Mass., Nov. 20, 2014 /PRNewswire/ -- Decision Resources Group finds that Affordable Care Act (ACA)-driven consolidation in the hospital sector has evolved from the blockbuster mergers and acquisitions seen in 2013 to a mix of partnerships, mergers, affiliations, and alliances. Markets are not simply progressing along the continuum until only one or two health systems remain—instead, consolidation deals have become more deliberate and strategic. Decision Resources Group's newest Executive Briefing describes the dynamics of 2014 hospital consolidation, as health systems work to effectively compete within the healthcare reform landscape.

Key Facts:

  • The Executive Briefing, entitled Hospital Consolidation: A Different Route in 2014  leverages Decision Resources Group's Hospital Consolidation Continuum, which places markets across the nation in different stages of consolidation, from "Early" to "Mid" and finally "Mature."
    • Key factors include the driver of consolidation, the percentage of the market's hospitals that are independent, and the implications for the pharmaceutical industry.
      • What characterizes a market with Early consolidation? Markets in the early stages of consolidation typically have a high percentage of independent hospitals, and partnerships among health systems are still developing.
      • What are the attributes of a Mid-consolidation market? A moderately consolidated market has a fair percentage of independent hospitals mixed with large health systems. While some health system partnerships have developed, there is potential for more.
      • What defines a market with Mature consolidation? In a highly consolidated market, there is a low percentage of independent hospitals, though these hospitals often have affiliation agreements with other hospitals in the market. The largest health systems have potentially begun to expand outside the market for acquisitions.
    • The Briefing revisits five markets assessed last year at varying stages of consolidation: Cleveland, Tampa, Seattle, Phoenix, and Hartford.
    • A second Briefing to follow this one will examine additional markets to watch and provide key implications of these trends.
  • Download the Executive Briefing here.


  • AnnJeanette Colwell, Market Analyst for Decision Resources Group, said: "Health system consolidation in Phoenix is a strong example of a market where hospitals are diverging from the traditional M&A path. The affiliation relationships forged in Phoenix are now being duplicated in the Tucson market, so statewide networks are being affected by these new consolidation agreements. Analyzing the implications of these market-specific changes in dynamics will be critical for businesses with an interest in the healthcare sector."
  • Sarah Wilson, Market Analyst at Decision Resources Group, adds: "Though common hospital consolidation trends are seen throughout the country, some markets are forging their own paths. For example, health systems in the Seattle market have leveraged partnerships to form direct contract accountable care organizations with employers, including aviation giant Boeing. As every deal in every market is unique, it has become necessary to look for the specific consolidation trend that drives each market."


  • Decision Resources Group is offering an open webinar, "Beyond the Continuum: The Evolving Route of Hospital Consolidation," based on the Executive Briefings, which will discuss how hospital consolidation will continue to alter market dynamics across the country.  This webinar will take place December 11th, 2014 at 2 pm Eastern and is open to media, payer, provider, PBM, government, and Pharmaceutical executives. Register for the webinar here.

About Decision Resources Group
Decision Resources Group offers best-in-class, high-value information and insights on critical issues within the healthcare industry. DRG insights and analysis on the U.S. managed care market are powered by HealthLeaders-InterStudy. Clients rely on this analysis and data to make informed decisions. Find out more at www.hl-isy.com and www.DecisionResourcesGroup.com.

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For more information, contact: 
Christopher Comfort  
Decision Resources Group  

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SOURCE Decision Resources Group

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