Mergers & Acquisitions
The question of whether to pursue a partnership can be an agonizing one for healthcare executives; however, the most challenging decision is often not “if,” but “when.”
The monumental financial events of the last several years have caused tremendous fluctuation in the performance of not-for-profit healthcare organizations. Realizing their cost structure may not be sustainable, some of these organizations are now contemplating critical questions: how much longer can our organization survive if market conditions persist? Is it time to seek a partner? Is it time for service line affiliations? Can we enhance revenue on our own?
Responsible decisions, by definition, are those that can be confidently answered for. They are made from a place of trustworthiness and accountability. Therefore, when considering a merger or acquisition, it is on hospital and health system leaders to ensure they are operating from a place of strength, not distress. By partnering proactively, organizations can pursue a reliable, carefully considered strategy that will best serve their constituents rather than a last-minute effort to save their organization regardless of the consequences.
Whether you pursue a partnership via a clinical affiliation, join a network, or seek a merger, the most critical step is to formulate a plan. Not doing anything, or waiting too long to act, could be the difference between finding a strong partner and closing your doors.
In this article, Jeff Hoffman, Jared Langus, and Mark Johnston identify the performance indicators that hospital leaders need to monitor to know when the time is right to make the best decision for their organization.
Edited by: Matt Maslin
Designed by: Mary Anne Akhouzine
