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I think mergers and acquisitions are indeed very important strategic initiatives, both for developing markets as well as for developed markets. If you see the challenges health providers are facing today, it’s around managing patient outcomes, it’s around reducing cost of health care, as well as delivering the best experience for patients.
If you break it up between developed markets and developing markets, what’s happening in developed markets of course, is that cost of health care is rising. And providers are looking for more and more ways to reduce costs of healthcare, either by increasing scale of buying, scale of technology or managing patient outcomes.
In terms of developing markets, it’s all about getting more access, both to patients, to clinicians as well as newer geographies. And mergers and acquisitions are a great tool to actually enable both of these. They are not an end in themselves, of course, because once you acquire other hospitals, you’ve got to do that difficult job of integrating them and ensuring that the best practices in your clinic or your hospital actually translate into what you’ve acquired.
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