First few Article Sentences
The economic downturn and resulting restricted access to capital have caused many hospitals to consider a partner or other affiliation strategy. Declining volumes and the deteriorating payer mix are further forcing these discussions � as are the seemingly countless opportunities for capital-rich hospitals to acquire struggling, undervalued hospitals.
Recent healthcare reforms may have a further impact on hospital affiliation. In fact, a recent Moody�s report predicts that �as governmental auditing and oversight of revenue are tightened, hospitals will be pressured to operate more efficiently, forcing spending cuts and mergers among smaller hospitals after 2014.� Affiliating or acquiring may be the right thing to do, but before taking such a step, there are some considerations for both parties.