The forces of consolidation are well under way and the merger was not totally unexpected—all of insurance is going through similar consolidation, according to Munzoor Shaikh, a director in West Monroe Partners' healthcare practice.
“Healthcare insurance business is not the best today in terms of return on capital,” Shaikh says. “We see this as a trend in consolidation toward an oligopoly system. The U.S. healthcare system is averse to a single payer system—monopoly—and we see an oligopoly as an alternative equilibrium point.”
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