Seven health care trends
Experts say Columbia’s experience in re-evaluating its corporate culture and re-examining its business practices and acquisition strategies is part of a set of larger changes in the healthcare marketplace:
1. A smaller, less aggressive Columbia. Plans to divest home healthcare holdings and re-evaluate acquisition plans, coupled with the ongoing federal investigations it faces, suggest the firm will be a less dominant player.
2. The continued consolidation of hospitals. Even if Columbia’s acquisition pace slows, experts say other hospitals and health systems will continue to merge in an effort to create greater efficiencies and compete for contracts.
3. A government push to slow the aggressive drive for profits. The federal government appears to be committed to watching hospitals closely for rule bending. Tougher fraud watch by the Department of Health and Human Services is predicted. The government plans to look for signs of hospitals referring patients exclusively to organizations they own.
4. Consolidation in the home care industry.
5. Slower growth in the home care industry.
6. Hospitals selling home healthcare agencies. Hospitals will create only contractual arrangements with them.
7. An increased understanding that bigger systems are not necessarily better.