2017 Predictions: How Consolidation Will Impact Hospitals and Health Systems

Swisslog Healthcare CEO, Stephan Sonderegger, outlines three key consolidation trends that will drive change in the year to come.

December 14, 2016

Swisslog Healthcare shares CEO Stephan Sonderegger’s predictions for how the trend of consolidation will impact hospitals and health systems in 2017.

The article outlines three key areas where consolidation will continue to be a key strategy for addressing the challenges faced by health systems, such as growing patient access demands, rising drug costs, and amplified demands for improved outcomes and quality. These areas are:

  • Continued pursuit of affiliations, acquisitions and mergers and drive toward “systemness”

  • Supply chain management programs and consolidated service centers (CSCs) to drive operating efficiencies and cost savings

  • Pharmacy program consolidation and centralization to transform distribution and enhance system integration

 

"The changing payer mix is leading to shrinking reimbursement per patient, negatively impacting profitability. As hospitals and health systems struggle with these challenges, one strategy that continues to attract interest is the concept of consolidation and centralization, whether it be organization or service line driven,” explains Sonderegger.

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