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Cybersecurity Costs Could Prompt Future Hospital Mergers

Posted in Electronic Health Records, Hospitals and Institutions, Medicare and Medicaid, Privacy and Data Protection, Reimbursement Matters

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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