Why Banks Merge, but Healthcare Institutions Do Not- Is It Possible?

As a public health professional, I often find myself reflecting on the striking contrast between Nepal’s banking sector and healthcare system. In recent years, the banking industry has undergone significant consolidation, with 347 banks and financial institutions merging into just 110 entities as of April 2024. This strategic move has undoubtedly strengthened the financial sector, improving operational efficiency, service reach, and stability. In contrast, Nepal’s healthcare sector remains highly fragmented, with a growing number of private hospitals, nursing homes, and diagnostic centers operating independently. Despite facing significant challenges such as financial constraints, workforce shortages, and uneven service distribution, healthcare institutions have not followed suit by merging. This brings us to an essential question: Can Nepal’s healthcare sector adopt a merger model similar to that of the banking sector?

Lessons from Bank Mergers