Frost & Sullivan: US Healthcare Provider M&A Activity Fueled by Low Margins and High Compliance Costs

Frost & Sullivan: US Healthcare ProviderFrost & Sullivan: US Healthcare Provider M&A Activity Fueled by Low Margins and High Compliance Costs PR Newswire MOUNTAIN VIEW, California, Feb. 27, 2014 -- The completely enforced Affordable Care Act will catalyze industry consolidation in 2014 Merger and acquisition (M&A) activity is gaining pace in the U.S. healthcare provider industry as companies attempt to recover from the reduced profitability and operating margins caused by the economic downturn. The industry sees M&A as a key means to reverse the trend of declining profits as they boost economies of scale and provide access to more capital, which is required to comply with the various regulatory standards. New analysis from Frost & Sullivan's Analysis of Mergers and Acquisitions Trends in the United States Healthcare Provider Industry reveals the volume of M&A deals has increased from 199 in 2007 to 260 in 2013. In particular, the post-acute care, surgical and emergency center segments are expected to drive M&A activity in the U.S. healthcare provider industry. For complimentary access to more information on this research, please visit: http://bit.ly/1pusDlz. "The full-fledged implementation of the Affordable Care Act – that aims to improve access to healthcare among U.S. citizens – is expected to drive consolidation in the healthcare provider industry over the next 12 months," said Frost & Sullivan Business and Financial Services Research Analyst Dr. E. Saneesh.