In Partnership with:Roundtable: Capital Finance — Industry Consolidation
Healthcare organizations' concerns about capital access and long-term viability are driving a boom in mergers, acquisitions, joint ventures, and other affiliations. Increasingly, these agreements result in nontraditional partners: nonprofits with for-profits, academic medical centers with investor-owned firms, faith-based systems with secular systems, and affiliations across the continuum of care. Ownership and governance structures also vary in terms of control.
Today's healthcare leaders must base their M&A search on a host of factors, including capital access, local market needs, financial support, and growth opportunities—and the risk of being left out. Time and effort must also be invested in priorities after the merger or acquisition is completed. Careful planning around managing the business as well as direct and indirect relationships post-consolidation need to be near the top of every leader's "to-do" list.
Click below to download this FREE report featuring senior executives from Medical Center of Central Georgia, SSM Healthcare, Fletcher-Allen Healthcare, and Bank of America Merrill Lynch.Executive Insight Report: Capital Finance and Industry Consolidation
The latest Executive Insight Report explores the results of a new HealthLeaders Media Buzz Survey on capital finance and industry consolidation The data reveal that many healthcare organizations are following similar strategies when it comes to acquisitions and affiliations. Far more organizations say they expect to acquire or partner than be bought. Similarly, expanding a geographic footprint is the predominant reason for healthcare groups’ M&A, partnership, or affiliation efforts. And, the majority of respondents said they are focusing on expanding in the primary care and physician practices. Obviously, not every healthcare organization can be an acquirer, and not every group should focus solely on expanding in primary care and physician practices. How can entities differentiate themselves if every healthcare organization in the industry is following the same strategy? As the industry continues to consolidate, the need for strategic and creative planning, partnering, and financing is essential for all healthcare organizations.Capital Finance and Industry Consolidation Buzz Survey
In January of 2013, a survey on capital funding was sent to members of the HealthLeaders Media Council. Senior leaders from hospitals, health systems, physician organizations, and other groups were asked about their plans for M&A, partnership, or affiliation efforts. A total of 137 completed surveys are included in the analysis, which included 59 Senior Leaders. Results for Senior Leaders are broken out for comparative purposes.