In June 1996, two of New York City's leading medical establishments, Mount Sinai Medical Centerand New York University Medical Center announced that they would merge, creating a health care powerhouse with $2.2 billion in revenues. Their size would help them navigate financial risk and negotiate with payors from a position of strength. In the end, however, they couldn't come to terms on combining the faculty and programs of their respective medical schools: the merger's compelling financial logic was defeated by the institutional pride of irascible academics.
Critical mass could have been important for technology transfer as well. Isaac Kohlberg NYU's VP, industrial liaison, foresaw in the...
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