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doctor’s offices, will be impacted in terms of revenue. That, in turn, is causing a wave of consolidation. “The main problem is this: They are having trouble negotiating and maintaining high reimbursement levels for the services they’re offering these days,” says Brad Rosgen, the head of insurance wholesale broker and managing underwriter Burns & Wilcox’s healthcare center for excellence. “We’ve seen a significant amount of banding together, mergers and acquisitions of larger health systems, smaller systems, independent physicians—basically an integration of every type of healthcare service you can offer.” In order to gain better bargaining power, many smaller entities have sold their practices to larger health systems. In addition, more doctors themselves are moving to larger practices due to the challenges and regulatory landscape being created by the Affordable Care Act. So how is this affecting insurance agents?

“We’ve seen a significant amount of banding together— basically an integration of every type of healthcare service you can offer” Brad Rosgen, head of Burns & Wilcox’s Healthcare Center for Excellence

A wave of hospital mergers and acquisitions In 2012, the number of deals to merge two or more hospitals was more than twice what it was in 2009.

70 60 50 40 30 20 10 0

34

16

32

22

22

38

22

38

16

34

36

40

41

52

38

67

For-profit Non-profit buyers buyers

For-profit Non-profit buyers buyers

For-profit Non-profit buyers buyers

For-profit Non-profit buyers buyers

For-profit Non-profit buyers buyers

For-profit Non-profit buyers buyers

For-profit Non-profit buyers buyers

For-profit Non-profit buyers buyers

Total deals: 50

Total deals: 54

Total deals: 60

Total deals: 60

Total deals: 50

Total deals: 76

Total deals: 93

Total deals: 105

2005

2006

2007

2010

2011

2012

2008

2009

SOURCE: Irving Levin Associates

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Profile for Key Media

Insurance Business America issue 2.04  

The magazine for America’s insurance broking and advice community.

Insurance Business America issue 2.04  

The magazine for America’s insurance broking and advice community.

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