Getting To The Root Of The Health Care M&A Frenzy | Insurance News Net

Although much of this activity is about scaling — the idea that if you’re not big enough, you have to find someone bigger to merge with — I believe that much of what’s going on now is in response to the Affordable Care Act. The ACA lit the fuse on a trend that might have happened anyway, but was certainly sped along by the government’s push to insure all Americans. In short, we seem to be returning to a monopoly industry, where big companies are buying up smaller ones to achieve efficiencies of scale that not even the state-run nonprofit exchanges can touch.

Source: Getting To The Root Of The Health Care M&A Frenzy | Insurance News Net

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