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US: Obamacare may lead to nation-wide hospital consolidation

 |  September 26, 2013

As President Obama’s Affordable Care Act prepares to go into effect, some experts are speculating that a side-effect of the legislation will be a slew of hospital mergers and strategic partnerships, say reports.

According to one expert, Constantine Cannon partner Matthew Cantor, mergers are occurring at twice the speed than before the healthcare legislation was passed. More deals are currently under review.

Reports say some hospitals may feel pressured to merge to keep up revenue as they see lower Medical payments from the government.

Further, the new legislation alters the healthcare payments systems from a fee-for-service model to fees based on medical condition, based on the incentive to keep patients healthy.

Full Content: NJ.com

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