Anatomy of a Deal Series No. 5:
After the Deal Is Over: What Hospital Integration Looks Like

by Daniel M. Grauman, Managing Director & CEO

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The devil is in the details. A year after the merger of Independent Hospital (IHX) and Regional Health System (RHS), the work of integrating these facilities is still underway. Some aspects of integration, such as reviewing group purchasing contracts, food services agreements, opportunities to consolidate back-office functions and more, have been relatively easy to complete. […]

Why It’s Time to Update Your Physician Compensation Model

by Karin Chernoff Kaplan, Managing Director

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It’s time to stop playing “kick the can” when it comes to physician compensation in hospitals and health systems. When the 2021 Medicare Physician Fee Schedule (MPFS) sought to restructure physician reimbursement by increasing payment to cognitive care specialists such as primary care physicians and reducing reimbursement for procedure-based specialists, it was a move designed […]

Anatomy of a Deal Series No. 4:
Navigating the Due Diligence Process

by Daniel M. Grauman, Managing Director & CEO

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Once the matchmaking aspect of a healthcare M&A is complete and the parties involved agree on what partnership might look like, the next step is due diligence. Performing due diligence can seem like a “check the boxes” exercise—but it’s much more than that. It’s an opportunity to explore the strategic implications of a proposed merger […]

3 Ways to Use Hospital Price Transparency Data for Competitive Advantage

by John Harris, Director
and Clare O'Mara, Senior Associate

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Shifting a $1 trillion dollar industry from confidential contracts to publicly published pricing is a massive transformation. In the middle of recovering from the COVID-19 crisis, hospitals are responding to this transformation. Background: The hospital price transparency rules require consumer-friendly tools to help individuals shop for hospital services based on price. They also require hospitals […]

3 Key Factors to Analyze as Cardiac Procedures Move to Outpatient

by Mark J. Dubow, Director
and Ross Shuster, Manager

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By recategorizing procedures previously designated inpatient only, CMS is actively redirecting a significant number of cases to Hospital Outpatient Department (“HOPD”) and community-based ambulatory surgery center (“ASC”) settings. We have discussed the impact this will have on outpatient surgery, and strategies to prepare. This outpatient shift will also affect cardiac services, creating both risks and […]

Continuing to Navigate the Changes in the Medicare Physician Fee Schedule

by Karin Chernoff Kaplan, Director

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The changes in Work RVU (WRVU) values contained in the 2021 Medicare Physician Fee Schedule have the potential for wholesale disruption to productivity-based physician compensation models. To date, the response has varied among health systems, but for the most part, due to pandemic distractions and the sheer complexity of the impact, organizations have kicked the […]

Launching a Community Oncology Center: 5 Key Considerations

by Meredith Inniger, Manager

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Rapid evolution in diagnostics and treatment for cancer care, innovation through genomics and predictive analytics, the continuing shift toward value-based care are hastening the migration of oncology from hospital settings to community-based centers.  This raises the question: Is now the right time to invest in a community oncology center? The experiences of multiple health systems […]

Anatomy of a Deal Series No. 3:
The Art of Negotiating a Deal in Healthcare M&A

by Daniel M. Grauman, Managing Director & CEO
and Scott Stuecher, Manager

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So you’ve made it through the request for proposals (RFP) process, an ordeal that can amount to a great deal of (usually digital) paperwork and a series of check-the-box demands, with little, if any, one-to-one discussion with the issuer. Now comes the interesting part: discussions between the healthcare organization that is seeking a partner, and […]

The Surgery Shift from Inpatient – Assessing the Financial Impact

by Mark J. Dubow, Director
and Meredith Inniger, Manager

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Surgery has long been a key driver of hospital profitability. Effectively handling the new Medicare outpatient surgery rule[1] and subsequent care shift to outpatient settings is critical to long term financial success. This rule includes several important policy changes, most notably the elimination of the Inpatient Only List on a phased schedule through CY2024 when […]