Lately I’ve been talking to clients at both physician networks and hospitals about surviving in the age of healthcare reform. It doesn’t surprise me that the challenges related to mergers and acquisitions come up over and over again. Executives are concerned with protecting their revenue streams during consolidations, which are on an upward trend primarily due to ACOs, rising costs, and other reform initiatives. In fact, in a recent survey of hospital CFOs, one of the findings indicated that merger and acquisition activity is expected to remain high during 2014.
The question I hear most is, “How do I absorb a physician’s practice?” and, “How do I ensure my revenue streams keep moving?” If they’re going to be sold they may wonder if their service lines are going to stay the same. There are serious considerations on both sides. Add to that the challenges of ICD-10 as it relates to revenue cycle management, and CFOs have their work cut out for them.