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Why Does This Healthcare Company Have So Many Imitators?

Sep 12, 2020 - Nasdaq
Mergers and Acquisitions

When a large company is successful, one reason often cited is "economies of scale." The benefit of being big is that costs are spread across, or "scale" to cover, more and more situations. A doctor needs the same number of IT systems, buildings, and equipment to see 1,000 patients as she does to see the first patient -- and if she has 1,000 patients, she's more likely to get a good price on supplies. Administrative costs scale, too; the cost of managers doesn't increase with each patient who com...