US Air Ambulance Mergers on the Cards

The No Surprises Bill is slated to come into effect soon. If all goes well, the bill will come into effect from the first month of next year. In this regard, the US air ambulance industry is preparing itself. This is especially so for organizations that are funded by private equity with the sole motive of profit. Survivability could be an issue for most small players in the industry. As with any other industry, the US air ambulance industry too may soon look at mergers to cut costs and increase efficiency. The primary reason behind this is an expectation that the payouts for the services are going to get thinner.

US Air Ambulance Acquisitions Cannot Be Discounted

For the big players with deep pockets, it is an opportunity to acquire the smaller ones to increase their reach. In this uncertain time for the US air ambulance industry, it would not be surprising that some of the smaller players start fearing bankruptcy. This is an opportunity for the biggies as they will surely get an upper hand in negotiations. The industry might soon veer towards oligopoly. In other words, it would not be surprising to see just a few organizations controlling the US air ambulance industry.

Rural Access to Air Ambulance Services

The No Surprises Bill has trained all its guns towards the pricing but not at the accessibility problems that may possibly result from fewer players in the market. It is noteworthy that the rural parts of America need air ambulances most but from a business point of view, they are the least profit-making. The result could be a lack of motivation for the US air ambulance industry to look at these areas. Of course, the government – through policy changes – can incentivize air ambulance services to look at these regions.

 

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