Know the ins and outs of Hospital mergers and acquisitions

Know the ins and outs of Hospital mergers and acquisitions

The Healthcare landscape has become increasing tough to navigate due to the skyrocketing costs, lacuna of skilled workforce, burgeoning patient demands and overcrowding of competitors. In such challenging times, one way forward for several healthcare enterprises is to choose to merge with another healthcare facility to expand their footprint and synergize their core compatibilities.

Healthcare mergers if thoughtfully planned and executed are beneficial to everyone involved.

A successful merger depends upon the following factors

1. Strategic vision

The hospital merger is likely to be a success only if both the parties involved have similar values and vision. The two partners must have cultural identities which can be blended into one while going forward. They should also share a common achievable goal for the future. They should map their unified targets and set the direction for growth by consolidating on their joint strengths.

2. Financials

When two Healthcare entities have to merge into one, the most challenging task is the balance of their financials. This is a Herculean task as pay structures, pricing protocols, remuneration, tariffs, perks etc. of the two merging partners have to be aligned and balanced. This exercise has to be carefully steered by experts as any error can fuel mass attrition.

3. Leadership guidelines

When two Healthcare units merge, care should be taken to demarcate leadership hierarchy, governance roles and regulation framework right from the beginning. This will help to get the employees of both merging Healthcare units on the same page and eliminate any confusion or dissatisfaction.

4. Fostering team spirit

While dealing with a merger, many employees may have anxiety issues and job uncertainty. It is your duty as a leader to set these negative feelings at rest and reassure your workforce about their job security. You should also motivate both sets of staff to work as one with the spirit of teamwork and unity.

5. Amalgamate your strengths

A merger will be successful if both Healthcare organizations blend their strengths to supplement what the other is lacking. E.g., If your hospital has good support staff and your partner has advanced Healthcare maintenance and record systems, your merger will be like a marriage made in heaven as each partner will be benefitted. Take the best from the two merging cultures to curate a new standard that will elevate their synergized strengths.

6. Design an integrated brand strategy

Each merging Healthcare organization will have its own unique identity, USP and social media messaging. You will have to blend these two to construct a unified communication strategy.

To summarize, mergers and acquisitions can help Healthcare institutes navigate through earth-shattering changes in market scenarios and deal with talent shortages, cost reduction and changing customer dynamics. If managed well, they can spur success and lead to manifold growth. However, if handled haphazardly, they can lead to chaos and loss of brand equity. If you are planning to set foot on this path, be sure to avail of the services of Hospertz, a Healthcare consultancy firm. We have more than 2 decades of experience in this field and can help you sail safely through the choppy seas of a merger.

Blog has been written by Dr. Vishal Jadhav, a veteran in the field of hospital consultancy with a rich experience of more than 20 years and founder of the Healthcare Consultancy Firm, Hospertz.

DR. Vishal Jadhav, Director
Hospertz@gmail.com
+91 9867712705/ 9820833149