A September 8 article in Bloomberg BNA's Health IT Law
& Industry Report and other publications,
"Cybersecurity Costs Could Prompt Future Hospital
Mergers," discussed the factors creating rising pressure on
many smaller hospitals to merge or be acquired. Day
Pitney's Eric Fader was quoted in the article.
Eric agreed with the article's premise that the costs of
implementing state-of-the-art cybersecurity measures,
which have been increasing in recent years, have encouraged
consolidation among hospitals. However, Eric pointed out that
increased competition from larger hospitals, many of which are
seeking to expand market share and improve economies of
scale, and declining reimbursements from third-party payors
have also been factors in the consolidation
trend. "It's hard to say that cybersecurity is the
key piece, but it's certainly a part of the puzzle," Eric
said.
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