--- title: Advantages of Medical Industry Mergers and Acquisitions description: Discussing the advantages of the merger of Claflin Medical, Hospital Associates, and RSI as the rebranded CME. image: https://blog.cmecorp.com/hubfs/Advantages%20of%20Medical%20Industry%20Mergers%20and%20Acquisitions.jpg --- - Welcome! - [Sign In](https://www.cmecorp.com/customer/account/login/referer/aHR0cHM6Ly93d3cuY21lY29ycC5jb20v/) - or - [Create an Account](https://www.cmecorp.com/customer/account/create/) - [![](https://www.cmecorp.com/media/public/icons8-phone-50.png) 800.338.2372](tel:8003382372) [![CME Corp](https://blog.cmecorp.com/hs-fs/hubfs/CME_CORP_LOGO_FIN_2018_PMS_300dpi-1.png?width=1331&height=442&name=CME_CORP_LOGO_FIN_2018_PMS_300dpi-1.png "CME Corp")](http://www.cmecorp.com) [Find My Account Manager](https://www.cmecorp.com/about/contact-us.html) | [Contact Us](https://www.cmecorp.com/about/contact-us.html) Search: ![](https://blog.cmecorp.com/hubfs/_images/search-icon.jpg) [![](https://blog.cmecorp.com/hs-fs/hubfs/_images/mini-cart.jpg?width=23&height=21&name=mini-cart.jpg)](http://www.cmecorp.com/checkout/cart/) - [CME Expertise](https://www.cmecorp.com/cme-expertise.html) - [Hospitals / IDNs](https://www.cmecorp.com/cme-expertise/hospitals.html) - [Laboratory](https://www.cmecorp.com/cme-expertise/laboratory.html) - [Imaging](https://www.cmecorp.com/cme-expertise/imaging.html) - [Surgery Centers](https://www.cmecorp.com/cme-expertise/surgery-centers.html) - [Clinics](https://www.cmecorp.com/cme-expertise/clinics.html) - [Physician Offices](https://www.cmecorp.com/cme-expertise/physician-offices.html) - [Behavioral Health Facilities](https://www.cmecorp.com/cme-expertise/behavioral-health.html) - [Long Term Care](https://www.cmecorp.com/cme-expertise/long-term-care.html) - [Rehabilitation Centers](https://www.cmecorp.com/cme-expertise/rehabilitation.html) - [Government Services](https://www.cmecorp.com/cme-expertise/government.html) - [Emergency Medical Services](https://www.cmecorp.com/cme-expertise/emergency-medical-services.html) - [Integrated Services](https://www.cmecorp.com/integrated-services.html) - [CAD-Based Layout & Design](https://www.cmecorp.com/integrated-services/cad-based-layout-and-design.html) - [Project Management](https://www.cmecorp.com/integrated-services/project-management.html) - [Direct-to-Site Services](https://www.cmecorp.com/integrated-services/direct-to-site-services.html) - [Biomedical Services & Technical Solutions](https://www.cmecorp.com/integrated-services/biomedical-services.html) - [Contractor Specialties](https://www.cmecorp.com/integrated-services/contractor-specialties.html) - [Find Products](https://www.cmecorp.com/shop.html) - [Shop By Category](https://www.cmecorp.com/new-shop/shop-by-category.html) - [Shop By Manufacturer](https://www.cmecorp.com/new-shop/brands.html) - [Digital Solutions Guide](https://cmesolutionsguide.com/) # Advantages of Medical Industry Mergers and Acquisitions [![Business teamwork, business concept illustration](https://blog.cmecorp.com/hubfs/Advantages%20of%20Medical%20Industry%20Mergers%20and%20Acquisitions.jpg)](https://blog.cmecorp.com/advantages-of-medical-industry-mergers-and-acquisitions) By [CME Corp Staff](https://blog.cmecorp.com/author/cme-corp-staff) | September 9, 2015 - [Tweet](https://twitter.com/share) [Large healthcare systems](https://www.cmecorp.com/who-we-serve/hospitals.html?utm_source=hubspot&utm_medium=blog&utm_campaign=cme%20insiders) buying smaller, stand-alone, hospitals and physician providers merging together or being bought by hospitals has become a big trend within the healthcare industry. That same trend is being seen on the commercial side of the healthcare industry as well as the clinical side. The healthcare industry has become very competitive and the benefits of larger group models provides many attractive benefits for both the product/service providers and their clients/customers, even including the patients. The following are just a few of the best of those advantages: ### **Resources and Economies of Scale** Smaller companies, generally, don't have all the resources necessary to keep pace with the increasing size and complexity of the growing multi-facility healthcare systems. Larger companies have more resources and can usually take advantage of the economy of larger scale for the purchasing of goods and services as well as of production, delivery and customer service/satisfaction. This economy of scale may also be reflected in more streamlined workflow, more efficient processes and a wider reach to serve more clients, customers and patients, which should serve to decrease individual item costs. ### **Higher Quality Service and Ability to Thrive** Sometimes smaller entities, whether they are small hospitals or other healthcare companies, have difficulty to both provide quality products/services and remain financially sound. Merging with a larger established entity is a prime way to help the smaller organization continue to provide quality products/services and successfully compete in the increasingly complex healthcare market. For instance, St. Luke's Hospital and Health Network recently unveiled their [acquisition of Phillipsburg's Warren Hospital ](http://www.lehighvalleylive.com/phillipsburg/index.ssf/2012/02/st_lukes_warren_hospital_the_n.html)and with it their plans to revive their maternity services and pump six million dollars in the hospital's intensive care unit, thus making such a merge beneficial both to the staff on hand and the patients seeking care. ### **Reducing Costs while Obtaining Wider Customer Base**  Many merged facilities/companies are able to achieve cost reductions by reducing administrative and other overhead, or indirect, costs.  Such overheads like marketing, purchasing, finance and maintenance become merged with the healthcare entities for increased purchasing power and lower, consolidated costs.  Each company may also enjoy a wider consumer base thus increasing market share, distribution channels and improved systems for more streamlined service. All of these cost-effective advantages for the companies being merged or acquired lead directly to savings for the consumer and/or patient.  Lower costs at the top should result in lower costs at the bottom. These are all some of the benefits that are expected of the recent merger of Hospital Associates, a California based medical equipment distributor, RSI based in New York and Claflin Medical Equipment  based in Warwick, RI. [Now rebranded as CME](https://blog.claflinequip.com/rebranded-cme-creates-premier-nationwide-source-for-medical-equipment-turnkey-logistics), CME serves thousands of hospitals, clinics, physicians, doctors, and other healthcare professionals throughout the United States as one of the most nationally recognized and renowned medical equipment and logistics companies. This merger of Claflin Medical Equipment, Hospital Associates and RSI has resulted in the group becoming the first nationwide medical equipment-focused distributor with over 2,000,000 products from more than 2,000 manufacturers. It's an excellent move that has increased all of the companies geographic reach and scope of services that will result in increased customer satisfaction. Visit [our website](http://www.cmecorp.com) to see how we can help support your new construction, expansion, or remodeling plans, and provide the medical equipment you need in a streamlined, efficient and cost-effective manner anywhere in the country. --- **About CME:** CME Corp is the nation’s premier source for [healthcare equipment](https://www.cmecorp.com/solutions/capital-equipment.html?utm_source=hubspot&utm_medium=blog&utm_campaign=cme%20insiders), [turnkey logistics](https://www.cmecorp.com/solutions/direct-to-site-services.html?utm_source=hubspot&utm_medium=blog&utm_campaign=cme%20insiders), and [biomedical services](https://www.cmecorp.com/solutions/biomedical-services.html?utm_source=hubspot&utm_medium=blog&utm_campaign=cme%20insiders), representing 2 million+ products from more than 2,000 manufacturers. With two corporate offices and 35+ service centers, our mission is to help [healthcare facilities](https://www.cmecorp.com/who-we-serve.html?utm_source=hubspot&utm_medium=blog&utm_campaign=cme%20insiders) nationwide reduce the cost of the equipment they purchase, make their equipment specification, delivery, installation, and maintenance processes more efficient, and help them seamlessly launch, renovate and expand on schedule.   [GPO](https://blog.cmecorp.com/topic/gpo) ![](https://blog.cmecorp.com/hs-fs/hubfs/logo.png?height=100&name=logo.png) Written by [CME Corp Staff](https://blog.cmecorp.com/author/cme-corp-staff) CME Corp's staff explores and presents the latest findings, news, and trends of the healthcare industry. ### Posts by Tag - [June 2017 (14)](https://blog.cmecorp.com/archive/2017/06) - [October 2017 (8)](https://blog.cmecorp.com/archive/2017/10) - [September 2023 (8)](https://blog.cmecorp.com/archive/2023/09) - [November 2015 (7)](https://blog.cmecorp.com/archive/2015/11) - [December 2015 (7)](https://blog.cmecorp.com/archive/2015/12) - [July 2017 (7)](https://blog.cmecorp.com/archive/2017/07) - [September 2017 (7)](https://blog.cmecorp.com/archive/2017/09) - [November 2017 (7)](https://blog.cmecorp.com/archive/2017/11) - [October 2023 (7)](https://blog.cmecorp.com/archive/2023/10) - [August 2014 (6)](https://blog.cmecorp.com/archive/2014/08) - [June 2016 (6)](https://blog.cmecorp.com/archive/2016/06) - [February 2018 (6)](https://blog.cmecorp.com/archive/2018/02) - [April 2018 (6)](https://blog.cmecorp.com/archive/2018/04) - [May 2018 (6)](https://blog.cmecorp.com/archive/2018/05) - [August 2025 (6)](https://blog.cmecorp.com/archive/2025/08) - [July 2014 (5)](https://blog.cmecorp.com/archive/2014/07) - [September 2014 (5)](https://blog.cmecorp.com/archive/2014/09) - [January 2017 (5)](https://blog.cmecorp.com/archive/2017/01) - [December 2017 (5)](https://blog.cmecorp.com/archive/2017/12) - [November 2021 (5)](https://blog.cmecorp.com/archive/2021/11) - [June 2023 (5)](https://blog.cmecorp.com/archive/2023/06) - [August 2023 (5)](https://blog.cmecorp.com/archive/2023/08) - [November 2023 (5)](https://blog.cmecorp.com/archive/2023/11) - [January 2024 (5)](https://blog.cmecorp.com/archive/2024/01) - [April 2024 (5)](https://blog.cmecorp.com/archive/2024/04) - [August 2024 (5)](https://blog.cmecorp.com/archive/2024/08) - [October 2024 (5)](https://blog.cmecorp.com/archive/2024/10) - [January 2025 (5)](https://blog.cmecorp.com/archive/2025/01) - [April 2025 (5)](https://blog.cmecorp.com/archive/2025/04) - [May 2025 (5)](https://blog.cmecorp.com/archive/2025/05) - [July 2025 (5)](https://blog.cmecorp.com/archive/2025/07) - [September 2025 (5)](https://blog.cmecorp.com/archive/2025/09) - [April 2026 (5)](https://blog.cmecorp.com/archive/2026/04) - [June 2026 (5)](https://blog.cmecorp.com/archive/2026/06) - [June 2014 (4)](https://blog.cmecorp.com/archive/2014/06) - [December 2014 (4)](https://blog.cmecorp.com/archive/2014/12) - [April 2015 (4)](https://blog.cmecorp.com/archive/2015/04) - [May 2016 (4)](https://blog.cmecorp.com/archive/2016/05) - [December 2016 (4)](https://blog.cmecorp.com/archive/2016/12) - [February 2017 (4)](https://blog.cmecorp.com/archive/2017/02) - [May 2020 (4)](https://blog.cmecorp.com/archive/2020/05) - [March 2021 (4)](https://blog.cmecorp.com/archive/2021/03) - [April 2021 (4)](https://blog.cmecorp.com/archive/2021/04) - [May 2021 (4)](https://blog.cmecorp.com/archive/2021/05) - [September 2021 (4)](https://blog.cmecorp.com/archive/2021/09) - [August 2022 (4)](https://blog.cmecorp.com/archive/2022/08) - [April 2023 (4)](https://blog.cmecorp.com/archive/2023/04) - [May 2023 (4)](https://blog.cmecorp.com/archive/2023/05) - [July 2023 (4)](https://blog.cmecorp.com/archive/2023/07) - [December 2023 (4)](https://blog.cmecorp.com/archive/2023/12) - [February 2024 (4)](https://blog.cmecorp.com/archive/2024/02) - [March 2024 (4)](https://blog.cmecorp.com/archive/2024/03) - [May 2024 (4)](https://blog.cmecorp.com/archive/2024/05) - [June 2024 (4)](https://blog.cmecorp.com/archive/2024/06) - [July 2024 (4)](https://blog.cmecorp.com/archive/2024/07) - [September 2024 (4)](https://blog.cmecorp.com/archive/2024/09) - [December 2024 (4)](https://blog.cmecorp.com/archive/2024/12) - [February 2025 (4)](https://blog.cmecorp.com/archive/2025/02) - [March 2025 (4)](https://blog.cmecorp.com/archive/2025/03) - [June 2025 (4)](https://blog.cmecorp.com/archive/2025/06) - [October 2025 (4)](https://blog.cmecorp.com/archive/2025/10) - [November 2025 (4)](https://blog.cmecorp.com/archive/2025/11) - [December 2025 (4)](https://blog.cmecorp.com/archive/2025/12) - [January 2026 (4)](https://blog.cmecorp.com/archive/2026/01) - [February 2026 (4)](https://blog.cmecorp.com/archive/2026/02) - [March 2026 (4)](https://blog.cmecorp.com/archive/2026/03) - [May 2026 (4)](https://blog.cmecorp.com/archive/2026/05) - [March 2014 (3)](https://blog.cmecorp.com/archive/2014/03) - [April 2014 (3)](https://blog.cmecorp.com/archive/2014/04) - [May 2014 (3)](https://blog.cmecorp.com/archive/2014/05) - [May 2015 (3)](https://blog.cmecorp.com/archive/2015/05) - [September 2015 (3)](https://blog.cmecorp.com/archive/2015/09) - [October 2015 (3)](https://blog.cmecorp.com/archive/2015/10) - [January 2016 (3)](https://blog.cmecorp.com/archive/2016/01) - [April 2017 (3)](https://blog.cmecorp.com/archive/2017/04) - [January 2018 (3)](https://blog.cmecorp.com/archive/2018/01) - [July 2018 (3)](https://blog.cmecorp.com/archive/2018/07) - [March 2019 (3)](https://blog.cmecorp.com/archive/2019/03) - [June 2019 (3)](https://blog.cmecorp.com/archive/2019/06) - [March 2020 (3)](https://blog.cmecorp.com/archive/2020/03) - [June 2021 (3)](https://blog.cmecorp.com/archive/2021/06) - [July 2021 (3)](https://blog.cmecorp.com/archive/2021/07) - [March 2022 (3)](https://blog.cmecorp.com/archive/2022/03) - [May 2022 (3)](https://blog.cmecorp.com/archive/2022/05) - [June 2022 (3)](https://blog.cmecorp.com/archive/2022/06) - [September 2022 (3)](https://blog.cmecorp.com/archive/2022/09) - [November 2022 (3)](https://blog.cmecorp.com/archive/2022/11) - [February 2023 (3)](https://blog.cmecorp.com/archive/2023/02) - [November 2024 (3)](https://blog.cmecorp.com/archive/2024/11) - [October 2014 (2)](https://blog.cmecorp.com/archive/2014/10) - [January 2015 (2)](https://blog.cmecorp.com/archive/2015/01) - [July 2015 (2)](https://blog.cmecorp.com/archive/2015/07) - [August 2015 (2)](https://blog.cmecorp.com/archive/2015/08) - [February 2016 (2)](https://blog.cmecorp.com/archive/2016/02) - [March 2016 (2)](https://blog.cmecorp.com/archive/2016/03) - [November 2016 (2)](https://blog.cmecorp.com/archive/2016/11) - [May 2017 (2)](https://blog.cmecorp.com/archive/2017/05) - [August 2017 (2)](https://blog.cmecorp.com/archive/2017/08) - [March 2018 (2)](https://blog.cmecorp.com/archive/2018/03) - [July 2019 (2)](https://blog.cmecorp.com/archive/2019/07) - [January 2020 (2)](https://blog.cmecorp.com/archive/2020/01) - [February 2020 (2)](https://blog.cmecorp.com/archive/2020/02) - [August 2020 (2)](https://blog.cmecorp.com/archive/2020/08) - [September 2020 (2)](https://blog.cmecorp.com/archive/2020/09) - [October 2020 (2)](https://blog.cmecorp.com/archive/2020/10) - [February 2021 (2)](https://blog.cmecorp.com/archive/2021/02) - [August 2021 (2)](https://blog.cmecorp.com/archive/2021/08) - [October 2021 (2)](https://blog.cmecorp.com/archive/2021/10) - [January 2022 (2)](https://blog.cmecorp.com/archive/2022/01) - [April 2022 (2)](https://blog.cmecorp.com/archive/2022/04) - [January 2023 (2)](https://blog.cmecorp.com/archive/2023/01) - [March 2023 (2)](https://blog.cmecorp.com/archive/2023/03) - [November 2014 (1)](https://blog.cmecorp.com/archive/2014/11) - [February 2015 (1)](https://blog.cmecorp.com/archive/2015/02) - [March 2015 (1)](https://blog.cmecorp.com/archive/2015/03) - [April 2016 (1)](https://blog.cmecorp.com/archive/2016/04) - [July 2016 (1)](https://blog.cmecorp.com/archive/2016/07) - [August 2016 (1)](https://blog.cmecorp.com/archive/2016/08) - [September 2016 (1)](https://blog.cmecorp.com/archive/2016/09) - [March 2017 (1)](https://blog.cmecorp.com/archive/2017/03) - [August 2018 (1)](https://blog.cmecorp.com/archive/2018/08) - [September 2018 (1)](https://blog.cmecorp.com/archive/2018/09) - [October 2018 (1)](https://blog.cmecorp.com/archive/2018/10) - [January 2019 (1)](https://blog.cmecorp.com/archive/2019/01) - [April 2019 (1)](https://blog.cmecorp.com/archive/2019/04) - [April 2020 (1)](https://blog.cmecorp.com/archive/2020/04) - [June 2020 (1)](https://blog.cmecorp.com/archive/2020/06) - [July 2020 (1)](https://blog.cmecorp.com/archive/2020/07) - [November 2020 (1)](https://blog.cmecorp.com/archive/2020/11) - [December 2020 (1)](https://blog.cmecorp.com/archive/2020/12) - [July 2022 (1)](https://blog.cmecorp.com/archive/2022/07) - [October 2022 (1)](https://blog.cmecorp.com/archive/2022/10) - [December 2022 (1)](https://blog.cmecorp.com/archive/2022/12) See all #### About CME Corp. - [Our Company](https://www.cmecorp.com/about/our-company.html) - [Careers](https://www.cmecorp.com/about/careers.html) -   -   #### Resources - [CME Insider's Blog](https://blog.cmecorp.com/) - [Case Studies](https://www.cmecorp.com/about/case-studies.html) - [Newsroom](https://blog.cmecorp.com/press-releases) - [Literature Resources](https://resources.cmecorp.com/) #### Quick Links - [Find Products](https://www.cmecorp.com/shop) - [Privacy Policy](https://www.cmecorp.com/privacy-policy-cookie-restriction-mode) - [Sales, Shipping & Return Policies](https://www.cmecorp.com/sales-shipping) - [Credit Application](https://www.cmecorp.com/about/credit-application.html) [![](https://www.cmecorp.com/media/public/linked_in_blog.png)](https://www.linkedin.com/company/cme-medical/) [![](https://www.cmecorp.com/media/public/facebook_blog.png)](https://www.facebook.com/cmecorp/) [![](https://www.cmecorp.com/media/public/instagram_blog.png)](https://www.instagram.com/cme_corp/) © 2026 CME Corp - An ESOP Company Delivering a Better Experience