The business of healthcare is changing rapidly. New legislation, the pace of medical innovation, and an older and more obese population mean the way we do things is going to have to change.
We spoke to Dr. Delos (“Toby”) Cosgrove, the CEO of the Cleveland Clinic, which is regarded as one of the most innovative hospital systems in the United States on these massive trends.
Consolidation is coming
During our conversation, Dr. Cosgrove pointed out that all of those trends, accelerated by the cost pressures of the Affordable Care Act, are pushing the industry in one direction — consolidation. “When you look at industries in the United States, particularly low margin businesses — and healthcare is clearly a low margin business — you figure that 25 percent of the hospitals right now are in the red, so it’s very low margin.” Cosgrove said. “What happened to airlines, what happened to supermarkets, what happened to bookstores? They all consolidated, they brought scale so they could drive efficiency. I think that’s what’s happening in healthcare right now.”
Read more: http://www.businessinsider.com/toby-cosgrove-hospital-consolidation-2012-11#ixzz2E0bfO0EA