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Healthcare M&A - business consequences and analysis

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Healthcare M&A - consequences & analysis

What do you think about the "coopetition" between insurers like *UnitedHealth Group* and service providers like hospital/physician groups that are increasingly consolidating? Basically, what are some of the negative consequences of coopetition, what is one advantage of coopetition?

5 sentences - this is a question that is being asked frequently on Wall Street.

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Solution Summary

This response explains and discuss about the 'Coopetition' in the insurance companies and hospitals. Also, advantages and disadvantages of the coopetition are discussed.

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Healthcare M&A - Consequences & Analysis
The coopetition between the insurers and the service providers like hospitals/physician groups is effective to facilitate the benefits for both the parties. These collaborations are made for gaining the financial gains through the integrated business performance (Yami, et al, 2010). But, sometimes, it causes a decline in the competition, which facilitates a power for the collaborative firms to influence the interest of the patients negatively (Baptista and Leitão, 2015). The ...

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