When one looks at the healthcare market, it is clear that merger and acquisition activity among hospitals is high. However, for many hospitals considering some form of a transaction, a merger or acquisition may be a relatively foreign strategy to pursue. This is particularly true for smaller, community hospitals.

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The Medicare Prescription Drug, Improvement and Modernization Act of 2003 created the Recovery Audit Contractor Program to reduce improper Medicare payments, and since its inception, the program has collected more than $2.5 billion in overpayments, as of August 2012.

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With just one year remaining before the largest parts of the federal health reform law take effect, 2013 will be a busy year for hospitals as they prepare for the biggest changes in healthcare since Medicare was introduced in 1965.

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