Blau Comments on Changes in Hospital Merger and Acquisition Activity

Partner Michael Blau is quoted in an OncologyLive article, “The Looming Squeeze on Provider Returns,” about legislative and policy changes that are affecting the prospects for independent oncology practices and the ability of inner-city and charity-care hospitals to continue serving low-income residents.

Blau, who moderated a panel of experts at the 2018 Association of Community Cancer Centers’ 44th Annual Meeting and Cancer Center Business Summit, said that many hospital acquisitions and alignments have been driven by shared-service agreements and co-management arrangements that allowed increased returns of up to 15 percent. But such margins will be much slimmer going forward, he said, and some financial “downside” can be expected.