Acquisitions pose challenges for GCC healthcare sector

Abu Dhabi-Mubasher: With acquisitions in the GCC healthcare sector forecasted to accelerate in 2016, the region’s larger hospital groups must prepare for serious challenges which could undermine profits from mergers with physician practices, said PA Consulting Group in its review.

Acquisitions of smaller hospitals and physician practices can leave large healthcare groups with bigger management issues and have developed an approach designed to maximise the value of a merger and ensure you keep your best people, PA added.

Joe Hawayek, healthcare expert at PA Consulting Group’s Middle East and North Africa (Mena) office in Abu Dhabi, said the key for those large healthcare groups which are increasingly looking to acquire smaller hospital groups and free-standing physician practices is to maximise business efficiencies and lessen downtime of delivery of care.

"What is intended to happen after a merger, and what happens in reality, are often two different things," he pointed out.

Mubasher Contribution Time: 27-Feb-2016 09:26 (GMT)