Final answer:
The healthcare market has continued to consolidate over the past decade, influenced by increasing demand and policy developments like the ACA. Mergers and acquisitions were notably active pre-recession, followed by a period of recovery, with significant FTC review of transactions in the range of $100-$150 million. Balancing market competition with corporate consolidation remains a key challenge in the healthcare sector.
Step-by-step explanation:
Over the last ten years, the healthcare market has experienced a continuation of a trend that began in the 1990s, known as hospital "merger mania," where local hospitals and small doctors' offices were merged or acquired by larger systems. This trend aligns with the U.S. healthcare providers and insurers responding to the increased demand due to America's aging and less healthy population. With advancements in telemedicine, the introduction of new healthcare professionals, insurance mandates, and the incorporation of artificial intelligence, efficiency and standardization have been at the forefront of healthcare evolution.
Furthermore, policy developments such as the Affordable Care Act (ACA) have impacted the healthcare market. The contentious nature of the ACA and its subsequent Supreme Court rulings and political implications, including its significant role in elections, have shaped the landscape of healthcare in the U.S. When analyzing the size and number of mergers, there was a noticeable growth from 2003 to 2007, followed by a decline during the 2008-2009 Great Recession, and a recovery thereafter. In particular, the Federal Trade Commission (FTC) saw the greatest number of mergers for review in 2012 for transactions between $100-$150 million.
Additionally, it's essential to consider the balance between corporate size and the number of competitors in the healthcare market. The FTC's decision on the Kinder Morgan / El Paso Corporation merger is an example where the government played a role in ensuring a balance between economies of scale and the prevention of a concentration of market power. This decision-making process is representative of the challenges faced when regulating healthcare mergers and acquisitions.