Small businesses are something of a rarity in today’s society. Corner shops that were once the talk of the town have quickly become engulfed by larger chains that circulate better business. Some independent businesses have shut down due to lack of consumers while others have chosen to partner with larger systems. California residents could be seeing changes in their independent area hospitals as mergers sweep the country.

In a movement becoming more common across the nation, independent hospitals are creating mergers with larger hospital systems. These acquisitions are slated as being more beneficial for patients as larger systems claim to have better resources for patient care. Patients could see an increase in their medical bills, however, as larger systems can charge higher prices due to lower competition.

Independent hospital CEOs must decide if a merger with a larger medical system may be right for their business. With the bigger chains becoming more recognizable and able to afford more necessities for their practices, smaller hospitals run the risk of shutting down altogether. Mergers with larger institutions could prolong the life of community hospitals.

Should the undertaking of hospital mergers continue nationwide, negotiations and settlements must be taken care of by those merging parties. Having the knowledge of California business procedures dealing with mergers and the legal ramifications of merging businesses can better enable the process to go as smoothly and quickly as possible. How the hospitals will be run and which procedures will change are issues that should be addressed, and understanding the best way to go about making such significant decisions can lead to quickly implementing new policies.

Source: aarp.org, “Hospital Mergers May Be Good for Business, but Patients Don’t Always Benefit,” Marsha Mercer, May 31, 2013