“Healthcare is a low-margin economic activity. Almost a quarter of American hospitals are already losing money. With that number bound to increase in coming years, we already know what to expect because we’ve seen it before in the airline, supermarket, phone and electronics businesses. There will be a wave of mergers and acquisitions to improve quality and lower costs.” Delos Cosgrove, M.D. – CEO and President at Cleveland Clinic (Article: The Great Consolidation Begins)
If M&A is the route we go, we’re going to get Comcast and United Airlines.
The good news? That leaves the door wide open for anyone who sees this as an opportunity to innovate. Where’s the blue ocean thinking?