Having a well-known brand name can provide negotiating leverage and enhance an organization’s reputation for physician and staff recruitment.
Although the Bipartisan Budget Act of 2015 made hospital-physician joint ventures less financially attractive, those arrangements could still be strategically smart. Michael Rovinsky discusses the benefits of hospital-physician joint ventures.
Once a letter of intent (“LOI”) is executed for the acquisition of a community hospital or health system, a due diligence process that assesses all aspects of the target organization will ensue. A key component of the due diligence process is developing a deep understanding of the likely future financial performance of both the organization […]
Proactive collaboration allows AMCs and community counterparts to benefit from each other’s strengths, creating value that wasn’t necessarily sought or derived from more traditional partnering approaches. In Part I of this blog post on partnerships between community hospitals/systems and academic/major teaching centers (“AMCs”) we: Explored changes in AMC rationale for pursuing partnerships and partner attributes […]
Industry transformation requires major adaptations from healthcare organizations – to increase scale, enhance scope, and achieve differentiation, among others. Partnerships can be a key vehicle to facilitate and pursue these adaptations. Partnerships between academic and community hospitals/health systems are a unique sub-set of healthcare provider partnerships. Academic providers aligning with their community counterparts is, of […]
Your selection of post-acute care (“PAC”) partners can make or break your value-based payment programs and care management initiatives. Even where fee-for-service is still dominant, having the right post-acute care partners can improve economic performance by reducing length of stay and minimizing acute care readmissions. Most health systems and hospitals do not own PAC facilities, […]
John M. Harris and Molly Johnson write that smaller healthcare providers seeking to engage in population health management may well have other options other than a merger or acquisition.
It’s easy to get swept up in merger mania. Many industry observers see rapid consolidation with no end in sight. In fact, a recent report by one major consulting firm posited that only about half of the current health systems will be left standing in 10 years. This conclusion was supported by analyses from […]
Consolidation in the healthcare industry is well-established and moving full-steam ahead. There were an average of 100 hospital transactions per year between 2011 and 2014, compared with 60 per year in the preceding four-year period.a More than 60 percent of U.S. hospitals are now part of a health system.b In most major metropolitan areas, the […]
As the temperature topped 98 degrees on the East Coast last month, I was reminded of the “deal heat” we often witness in healthcare transactions. Sometimes the intensity of negotiating deal terms can cause participants to lose perspective on the big picture. In our last post, we discussed the hot trends in hospital and insurer consolidation, […]