Do’s of a Healthcare Merger

Escalating budget considerations and uncertainties of patient demands have made many physician entrepreneurs opt for mergers as a means for consolidating or expanding their healthcare businesses.

If you too are a healthcare specialist looking forward to navigate this path, read ahead.

5 Do’s of a healthcare merger

• See that your visions and values match : A merger is like a marriage…it will be successful only if wavelengths of the two parties coming together match or atleast are similar. Make an in-depth study of whether the cultures of your two organizations can be blended into a single entity or it will confuse patients, employees and partners.

• Assess each set-ups strengths and weaknesses : One set-up might be having the most expertise in surgeries but have outdated medical equipment. The other may be having top-notch infrastructure but may lack physicians with experience. It is essential that each member of the merger makes a thorough audit of strengths and weaknesses and works to supplement the other half. It should be like two organizations working in tandem to create something better and more profitable.

• Ensure that you integrate identities : Before you make the merger final, make sure that your future action plans, goals and corporate identity are all on one page.
  • Create a unified brand strategy for the future
  • Align the social media identity and persona of both…the website, the digital content, the print advertising all should seem like that of a unified entity
  • Communicate effectively to internal i.e., physician partners and workforce and external stakeholders i.e., patients, family members and referring doctors about the benefits of the synergy.

• Articulate leadership and team guidelines : When the two teams of two different organizations come together, things can get a little tough because cultures, work schedules, attitudes all have to match. Decisions about leadership roles and hierarchy have to defined clearly in order to prevent confusion and bitterness. Sessions should be conducted by the HR team to reassure both teams of their job security. They should be encouraged to work with the right spirit of collaboration and teamwork, instead of competition.

• Define Financial issues : When two healthcare set-ups merge as one, a revamp of their financial plans like tariffs, pay structure, overtime remunerations, perks become inevitable. Try to find a middle path so as to not lose skilled employees due to attrition. Take the help of experts to devise financial plans that can remove any imbalances between the two merging set-ups.

Mergers are the best way forward in today’s day of competition and growth. If you want to cut costs and innovate simultaneously, merger is the way forward. Hospertz has years of experience in helping healthcare organizations navigate mergers and deal with the plethora of problems that accompany them.

Dr. Vishal Jadhav, Director

hospertz@gmail.com

+91 9867712705/ 9820833149