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When hospitals merge, independent practices feel it too

Hospital systems keep buying each other. The latest example is New Jersey's Hackensack Meridian Health signing a deal to buy Hunterdon Health. Each deal like this shifts power in the local market, and independent practices need to pay attention.

3 min read HealthRescue Partners
When hospitals merge, independent practices feel it too

What's happening

Across the country, large hospital systems are buying smaller hospitals, and often the doctors' offices around them.

The goal is usually size: bigger systems can negotiate higher prices with insurers and keep patients within their own network.

Why a hospital deal matters to a private practice

Even if your practice isn't being bought, a merger nearby can change your business in a few ways:

Referrals can dry up.

Hospital-owned doctors tend to refer patients to other doctors in the same system. If the hospital that used to send you patients joins a big network, that flow can slow down.

Bargaining power shifts.

A bigger hospital system can push insurers for higher rates. An independent practice negotiating alone has much less leverage.

Staff get poached.

Large systems can often offer nurses and front-office staff higher pay.

Buyout offers arrive.

Many independent doctors get offers to sell or become employees. Some offers are good; others mean giving up control over how you practice.

What to do now

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