In recent day mergers/acquisitions ha ve become very common in many hospital firms. This is because of the pressure that value -based reimbursements ha ve put on medical providers. There ha s been an increment in payment for healthcare systems based on quality rather than quantity. By merging or acquiring other health firms, hospitals have the capability of attaining higher targets for cost control, efficiency as well as sustainability. Within a few years ago there have been registered the highest number of mergers and acquisitions, whereby in 2017, 115 transactions of that kind were registered.

In terms of the effect of healthcare delivery ' s overall cost, there are many questions surrounding mergers/acquisitions. A given number of claims that structural changes due to the mergers ' low healthcare costs ha ve resulted in lowering patient expenses. In 2017, the American Hospital Association (AHA) reported that a hospital merger is required to maximize access to resources in various healthcare firms to improve patient cost s. The AHA reported that mergers decreased cost s by 2.5% or approximately $5.8 million from 2009 through 2014.