Supply Chain Integration Yields Big Benefits in M&A Deals

 

“Healthcare M&A activity remains high in 2017 as providers consolidate to achieve greater economies of scale in the face of declining patient revenues. Margins are under pressure and consolidation is a popular strategy to increase bargaining power and manage costs more efficiently. Recent findings indicate a real, but frequently untapped, cost improvement opportunity in provider supply chain integration. Successful integrations typically yield 3% – 8% cost savings …it is imperative for IDNs to remove unnecessary costs wherever possible. Supply chain integrations present a valuable opportunity to capitalize on M&A synergies…”

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