Examples of healthcare consolidation in EMEA
The trend for healthcare consolidation is not limited to the UK. Globally, mergers and acquisitions are on the rise as countries attempt to navigate the ever-growing challenges faced by hospital organisations.
In France, consolidation has grown in popularity, with around 60% of private hospital beds now owned by the top four medicine, surgery and obstetrics (MSO) hospitals, compared to 48% in 2014
. Likewise, throughout the Middle East and Africa, there has been considerable growth in the rate of mergers and acquisitions (M&A) since 2015, with a notable surge in the United Arab Emirates (UAE) and Saudi Arabia. In fact, in the UAE alone there have been more than twelve healthcare mergers since 2015 as a result of large demographic shifts and a rising population
While the goal of many M&As is to consolidate finances, there are other benefits and results. For example, the merger of two large hospitals in Amsterdam saw the amalgamation of administrative services for the Academic Medical Center and the VU University Medical Center, forming the Amsterdam University Medical Center, with the goal of strengthened patient services and more efficient, better-funded scientific research
The future of healthcare consolidation
With the growing success of consolidation, the healthcare landscape looks set to change considerably. While the rate of strategic M&As in Europe has slowed considerably as a result of COVID-19, the pace will gain momentum with smaller hospital organisations more likely to consider consolidation for financial reasons.
In the UK, thanks to the success of Greater Manchester’s operational consolidation, NHS trusts across the country are looking to follow suit to tackle mounting waiting lists and the increasing cost of healthcare.
The consolidation process can be lengthy and complex, with hefty administrative tasks and significant pressures placed on healthcare workers. Collaborating with an established MedTech company, like Olympus, may alleviate many of the pressures faced by healthcare organisations. With its diverse experience in many important industry trends and challenges, such as crisis management, digitalisation or value-based healthcare, Olympus offers support and solutions to help healthcare organisations undergoing consolidation.