The Academy Lumeris Strategic Tracking Survey- Q2 2018 Tracking: Consolidation & Strategic Partnerships

Key Findings

  1. Half (50%) of responding health systems completed an acquisition in Q1 2018 with a strong focus on acquiring physician practices and/or medical groups.
  2. The majority (63%) of responding health systems entered into a strategic partnership between Q4 2017 – Q1 2018, while 69% intend to form a new partnership during Q2 – Q3 of 2018.
  3. As health systems look to expand their capabilities and focus on integration, executives expect future partnerships to focus on provider services, insurance, and pharmacy.

INTRODUCTION

Over the past few years, health system consolidation has been on the rise, raising questions across the industry regarding how to best achieve scale as a provider organization and how significant growth can affect and enhance overall care delivery.

Since Q3 2015, The Health Management Academy (The Academy) has been tracking consolidation and partnership activity across the nation’s largest health systems. In this report, The Academy continues to track these trends and assess how these transactions may affect leading health systems and impact their organizational strategies moving forward.

METHODOLOGY

In June 2018, The Health Management Academy (The Academy) conducted the fifteenth round of phone interviews for its quarterly strategic survey among 16 senior Leading Health System executives, including: CEOs, COOs, CFOs, CMOs, CNOs, and CSOs.

The survey for the interview consisted of:

  1. A tracking section that provides insight into trends around primary strategic areas; and
  2. A special topic area that allows for an in-depth look into a timely, developing issue.