It’s a familiar scene from a blockbuster show: A billionaire investor sizes up a company by dividing the value of the company by its annual profit to find the multiple. It’s a metric used to assess the market value of an asset, and in the world of “Shark Tank,” it comes to investors quickly and […]
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. […]
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 […]
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 […]
Board members of not-for-profit community hospitals face enormous pressure to protect their community’s access to care. Even when the economic reasons for hospital mergers and acquisitions (M&A) are compelling, the decision to cede control to another system cannot be made based on purchase price alone. It’s just one reason why not-for-profit board members must understand […]
The search for a partner typically begins with a request for proposals (RFP). It’s a process designed to solicit interest from other organizations and narrow the field to two to three candidates that could prove to be a good fit. For health systems that respond to an RFP from an independent hospital, the goal is […]
The road through COVID-19 likely will be uneven for not-for-profit systems, with factors such as geography, cash position, unemployment and soft demand for services all playing a role. But for some systems, year two of the pandemic could also prove to be the right time for growth. In our “Anatomy of a Deal” series, we’ll […]
Board members of not-for-profit community hospitals face enormous pressure to protect their community’s access to care. Even when the economic reasons for hospital mergers and acquisitions (M&A) are compelling, the decision to give up control to another system cannot be made based on purchase price alone. It’s just one reason why not-for-profit board members must […]
The health care industry continues to consolidate at a rapid pace. Although the pandemic has delayed the implementation of some transactions and even compelled some organizations to cancel plans to merge or affiliate, others that would not likely have sought out affiliation options are now doing so. Under normal circumstances, key due diligence considerations pertaining […]
Hospital mergers and acquisitions (M&A) slowed down during the pandemic, with M&A volume declining each quarter and sinking to a 10-year low as management teams focused on the immediate operational priorities of the pandemic. Now, as the initial shock of the pandemic wears off, leaders who were leaning toward partnership before the pandemic are left […]