Strategic Planning in a Merger
Client/Profile
An independent, community hospital in the Mid-Atlantic
Challenge/Situation
Work with hospital leadership to develop a three year strategic plan in light of health reform and the opportunity to merge with a larger system.
Process
Hospital leaders wanted to develop strategies that would succeed whether the planned merger was completed or not. They had entered merger discussions from a position of strength, and wanted to enhance their negotiating position by demonstrating their viability.
Veralon facilitated a four-month-long strategic planning process culminating in the development of an actionable three-year strategic plan.
During the first two months, Veralon worked with senior leaders of the organization to analyze the situation and gain background regarding the market, challenges and opportunities and potential strategic initiatives. Veralon also conducted interview of key stakeholders to understand potential issues and begin to prioritize goals.
During month three, Veralon facilitated a full day onsite planning retreat in which senior management, assisted by Veralon, discussed national trends, operational results, competitive pressures, physician-hospital alignment issues, local payer strategies, and financial results. Using this information, the hospital leaders prioritized four objectives and several initiatives per objective through breakout sessions.
Results
Veralon then drafted a strategic plan outlining the mission, vision, major objectives and selected strategies to fulfill the objectives. After several iterations, the plan was turned over to senior management to finalize responsible parties and implement the plan.
The merger was completed on favorable terms, and the strategic plan guided their subsequent initiatives.