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Mergers and acquisitions in Western European health care: Exploring the role of financial services organizations

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  • Angeli, Federica
  • Maarse, Hans

Abstract

Recent policy developments in Western European health care – for example in the Netherlands – aim to enhance efficiency and curb public expenditures by strengthening the role of private sector. Mergers and acquisitions (M&As) play an important role in this respect. This article presents an analysis of 1606 acquisition deals targeting health care provider organizations in Western Europe between 1990 and 2009. We particularly investigate the role of financial services organisations as acquirers. Our analysis highlights (a) a rise of M&As in Western Europe since 2000, (b) an increase of M&As with financial service organisations acting as acquirer in absolute terms, and (c) a dominant role of the latter type of M&As in cross-border deals. To explain these developments, we make a distinction between an integration and a diversification rationale for M&As and we argue that the deals with financial services organisations in the role of acquirer are driven by a diversification rationale. We then provide arguments why health care, from the acquirer's perspective, can be considered as an interesting target in a diversification strategy and we advance reasons why health care providers may welcome this development.

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  • Angeli, Federica & Maarse, Hans, 2012. "Mergers and acquisitions in Western European health care: Exploring the role of financial services organizations," Health Policy, Elsevier, vol. 105(2), pages 265-272.
    • Handle: RePEc:eee:hepoli:v:105:y:2012:i:2:p:265-272
    DOI: 10.1016/j.healthpol.2012.02.012
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    1. David M. Cutler, 2000. "Introduction to "The Changing Hospital Industry: Comparing For-Profit and Not-for-Profit Institutions"," NBER Chapters, in: The Changing Hospital Industry: Comparing Not-for-Profit and For-Profit Institutions, pages 1-10, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Christine André & Philippe Batifoulier & Mariana Jansen-Ferreira, 2016. "Privatisation de la santé en Europe. Un outil de classification des réformes," CEPN Working Papers hal-01256505, HAL.
    2. Federica Angeli & Hans Maarse, 2016. "Private capital investments in health care provision through mergers and acquisitions: from long-term to acute care," International Journal of Health Planning and Management, Wiley Blackwell, vol. 31(4), pages 290-301, October.
    3. Javier Cerezo-Espinosa de los Monteros & Antonio Castro-Torres & Juan Gómez-Salgado & Javier Fagundo-Rivera & Carlos Gómez-Salgado & Valle Coronado-Vázquez, 2021. "Administration of Strategic Agreements in Public Hospitals: Considerations to Enhance the Quality and Sustainability of Mergers and Acquisitions," IJERPH, MDPI, vol. 18(8), pages 1-18, April.
    4. Mikko Nurminen, 2021. "Mergers and Acquisitions in the Markets for Diagnostic Services: Evidence from the Finnish Private Health Care Sector," Discussion Papers 139, Aboa Centre for Economics.
    5. Carine Milcent, 2023. "The sorting effect in healthcare access: Those left behind," Working Papers hal-03960599, HAL.

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