Included Health CFO Mark Flakne Talks M&A Strategy

How should CFOs decide whether or not to move forward with M&A deals?

Former OptumHealth CFO, Mark Flakne was with the company for 11 years. Now, he’s bringing his expertise to a new health system: Included Health. Founded in 2020, Included Health provides a combination of virtual care, navigation, and communities-based healthcare.

As Flakne settles into his new role, he’s channeling his finance and business expertise into opportunities for the system, including expanding patient reach and strategizing M&A and partnership avenues.

One of the most important aspects to consider while examining M&A, Flakne says, is ensuring the industry knowledge is there.

“The expertise and the kind of industry knowledge, it can't be understated,” he said. “It's just a really important part because the healthcare system is complex, it's dynamic and there's a lot of rigidity to it.”

Too often mergers and acquisitions take place for the wrong reasons and CFOs ensure all options are explored before stepping into M&A. Flakne’s advice when deciding whether or not to pursue an M&A deal? Focus on the original goal.

“I think the focus, when you think about M&A, is what we are working to create. And for us, we're creating that all in one destination for personalized care,” he said. “It's the process of assessing really continuing to keep in mind what was the original goal that we're trying to do. What are we trying to create and build, and therefore is M&A one of the better tools or are there other ways to do it?”

The key to this, Flakne says, is deep industry knowledge and expertise; something that market disruptors in retail and other industries don’t often have.

“The one important part is having that deep expertise and knowledge within the healthcare space as you do these acquisitions,” Flakne said. “I think we've seen companies jump in who are in different industries like retail and tech and I think one of the key attributes of being successful in M&A is really having a deep understanding of the industry, how it works. And again, back to that original goal: ‘What are we trying to create?’”

For CFOs navigating the intricate landscape of mergers and acquisitions, Flakne’s insights offer a roadmap. His emphasis on deep industry knowledge underscores the necessity of understanding the unique complexities of healthcare to drive successful M&A strategies.

 As you evaluate potential deals, keep the original strategic objectives at the forefront, ensuring that each move aligns with your long-term vision for integrated, patient-centered care. Flakne’s experience highlights that in a field as dynamic and regulated as healthcare, thoughtful, informed decision-making is key to achieving transformative growth and sustainable success.