Trends in Healthcare Partnerships and Consolidation

This document is a report that outlines emerging partnerships in the healthcare sector among diverse players, including Uber, Google, and WalMart. It explains how these companies are participating in the healthcare industry to drive value-based transformations. The report discusses the increasing merger and acquisition (M&A) activity in healthcare, indicating that in 2017, total disclosed deal value reached $42.6 billion, the highest since 2007. Factors driving this trend include increasing reimbursement pressures, advanced technology costs, and strategic opportunities linked to changing consumer behavior. It emphasizes the importance of healthcare organizations identifying the right partnership opportunities beyond traditional alliances, particularly with technology firms. However, the document also cautions that a high percentage of M&A partnerships fail, with about 70 percent not achieving expected synergies, primarily due to customer-related issues. The report concludes that while challenges exist, M&A activity in healthcare is expected to remain strong in the near future.